Sunday, 8 March 2015

The Tiger Time Lanes Band Shades: Understanding what they are and how they work

The tiger time lanes forex signal software is made up of several components. As you look at each matrix you can see the back drop to the levels is a series of coloured bands, referred in the live forex trading room as band shades. These band shades are determined by assessing the dynamic price movement using fibonacci ratios. They predict future support and resistance levels with the distance in between being shaded.


The first zone is called the white zone as in the most important zone on the grids. It represents what is “fair value”. What do I mean by that? Bear in mind that ostensibly forex is a relatively free market, where price is determined by the demand and supply for a currency pair (buyers and the sellers). “Fair Value” represents what the calculation has determined to be the natural range that price should be in on a given time frame. This is established using the historical data from that particular time frame (remember this natural price will be different on each time frame). However, price is constantly changing and so therefore the white zones are recalculating on every candle close. This means that when the market is quiet , i.e. where the price range over the time frame is small, for a protracted period, you will find that the white zones on all the time frames line up and the other indicators sit within the whites zone which gives the appearance of a congested area.


The zones either side of the white zone are coloured in various shades of orange. These orange zones get progressively darker the further away from the white zone they are from the natural price. On the basis that price always returns to its natural level (although is by definition the natural level must always be moving) the darker the colour the greater the chance that price will return to the natural level. The demarcation points between the levels, being based on fibonacci ratios, are the places with the highest probability of price change. If on a currency matrix several of these levels are in or close to alignment then that indicates strong areas of support and resistance.


As the white zone is always recalculating when price does move away into the orange zones it reacts and increases in size and follows the price. If or when the momentum of the price stalls for a reasonable period the white zone can collapse (quickly reduce in size) before expanding again to a more normal size. Thus the white zone can be deemed to go through a series of phases in any price move.






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