Here's other great examples of Probability Bands at work. On many days the market reverses from these levels almost to the pip but its best to look at them as reversal 'zones'.

In this example on the left in the GBP/USD the market stalls for 90 mins at the 65% probability band high and then rallies up just a few pips past the 88% probable high and reverses. On 1/24/07 the GBP finds support at the 65% probability band area and reverses about 50 pips. It then continues its down trend stopping just 7 pips away from the 95% probable low. On 1/26/07 the low of the day was the 65% probability band.

This tool is to be used with our other trading methods and as a tool to increase your odds of a successful trade. Trading counter trend is more risky than trading with the trend so use these other tools for confirmation : Fibonacci Profit Target, Trend Reversal, Statistical Hourly, 240 min, or Daily High/Low, Daily, Weekly and Monthly Pivot Points.



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