The first new indicator that we’re using is Bollinger Bands. Bollinger Bands shows the price of a security in a time range that separates two periods. For our purposes here, let’s assume we’re looking at price action going into April. Each time band has a distinct color that tells us when the price broke out of its range (red) or stalled out (green). The area between the bands will be the region where prices are likely to go in to the next period.
So now we know what the price looks like in the big wide areas above (where red and green indicate price action that stopped or reversed), we can see where the price is likely to go next. This makes it relatively easy to make out some fairly accurate predictions about where the price will go next. This is how we can make use of these predictions to make our very own XRP price prediction in April.
If you’re not familiar with Bollinger bands, it’s worth visiting the website. They’re based on the theory that the price of a security will follow a ‘flip-flop’ pattern. This means that as prices move up, they’ll go down a little bit, and vice versa. We can use this information to our advantage to predict where the price will go next. By using this simple principle, we can make some rather accurate predictions in advance.
One way we can predict the price movement is to look at the price history of the security in advance, before it makes any moves. Using Bollinger bands, we can see if the security has already gone through a period of price activity that we can relate to, and from this we can make an accurate prediction about what the future price of the security will be like. But how do we extract this data?
Well, for one thing, most of us who trade Forex are already aware that trading is typically done on the news. For instance, if the United States government decides to go to war in Iraq, the media will almost certainly report this fact. But if there’s no new news, no one is going to know about it. Therefore, it’s very useful to look for trends in price that have been going on for a while, and to attempt to predict where the price may be heading next.
Unfortunately, predicting what the future price of anything is difficult. There’s just no way to give someone an exact price in advance. But we can still make an intelligent prediction by looking at the price history of a security. For instance, we can look at what happened to the price of the S&P 500 when it was down at its lowest point, and what happened to it when it was at its highest point. Using this information, we can make some educated guesses as to what might happen in the market in the future.
Obviously, there’s much more to trading Forex than just picking a number and hoping you’re correct. After all, the market is not predictable, and you’ll likely make plenty of errors before you strike gold. But there are some simple techniques that you can use to give yourself a bit of an edge. And these techniques can really help you make some money even when you’re trading a conservative market like the S&P 500. So let’s take a look at one of these techniques.
One thing you can do to try to predict where the price of XRP is going is to look at the ups and downs of the past couple of months. If you notice that the price has always bounced back after being somewhat depressed, you can get ready for the price to start making a big move in April. Of course, you should never trade with faith, but if you find a profitable trading system, you might as well use it to try to make a living out of Forex trading.