While the reading and analysis of the Level 2 is the basis of all MOJO trades, it is also quite important that traders understand the other technical indicators that are used by MOJO ProTraders.
MOJO wanted to briefly go over Bollinger bands and the Stochastic Indicator, to give you some additional insights.
Bollinger bands were developed in the late 1980s by John Bollinger, a long-time technician of the markets. He developed the technique of using a moving average with two trading bands above and below it. Bollinger bands are able to adjust themselves to market conditions by measuring price volatility using a standard deviation calculation.
Bollinger bands expand and contrast as the price action of an issues becomes volatile (expansion) or becomes bounds into a tight trading pattern (contraction).
MOJO Traders use the Upper (White) Bollinger Band as an indicator to get better entry and exit points. This allows quick and decisive trades, so we can get the best entry and exit points we need for maximum profitability. The Center (Green) Bollinger Band is an exponential moving average, as the price channels are the standard deviations of the stock being studied. At MOJO Day Trading, we do not focus or use the Bottom (Red) Bollinger Band, so it is best not to spend too much time worrying about that for now.
Stochastics are an indicator that measure the relationship between an issue’s closing price and its price range over a predetermined period of time. The basic premise of stochastics is that a stock’s closing prices tends to trade at the high end of the day’s price action. Price action is the prices at which a stock traded throughout the daily session. MOJO ProTraders also use this as a guide to get the maximum profits and best entires possible on all trades.
If you are serious about day trading for a living, it is important to always be expanding your knowledge. If you want to learn more in depth about Bollinger bands and the Stochastic Indicator, it is important that you enroll in MOJO University and get the tools and education required to beat the market.
Remember, the next session of MOJO University begins next Tuesday, September 15th. MOJO made two more seats available, so if you are serious about becoming the next ProTrader, the time to act is now. To reserve your seat, follow this link: http://www.mojodaytrading.com/#!mojo-university/c1hvn
Make sure to check out today’s recap video and see this awesome action for yourself, you won’t want to miss a special LIVE trade: