How to Calculate Bounce Price

Another tutorial video on how to calculate a bounce price using Z-Score.

This is actually a true, quantitative trading strategy and one that has been the most helpful in preventing me from getting shaken out of swing positions. I was reluctant to share, because it is a very powerful and unique way of doing assessments, but I figured why not be helpful!

This can be applied as a sole strategy or it can be combined with other methods of quantitative or technical analysis to help you do your assessments.

Please feel free to leave your questions and comments below. Also, please let me know if you find this helpful at all.

Take care everyone and trade safe!

Note: Sorry for the constant clearing of my throat. I would blame COVID but its just a habit I am trying to kick when public speaking/recording haha. Embarrassing!

Comment:

I forgot to point out in this video, you can also do the complete inverse. If you think SPY will fall to -2.5 or -3 SDs away, you can enter this into the Solver and it will tell you what price SPY would need to trade at to reach that distance from tis mean.

Just an after thought that I forgot to include in the video!