Precisely Forecasting Price Ranges with Volatility

Using a tool like Bollinger Bands® to forecast future price ranges is a time-honored technique but its calculations are simplified and in some situations flawed. Incorporating the log-normal nature of stock prices into the calculations gives better answers. One greed-inducing aspect of volatility is that it enables us to make theoretically sound forecasts about the future.  It doesn’t matter whether it’s stock prices, annual rainfall, …

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