Hello everyone! I figured with all the excitement about charts and price fluctuations, this would be a good time to do a post on some fundamentals of Technical Analysis.

Here is a chart.

It's a chart of STEEM! Specifically, it's a 5-minute chart of STEEM/BTC, which shows the price changes over the last few hours.

Here is the same chart with Bollinger Bands (white lines) added.

Notice how the price tends to bounce off the upper and lower bands?

Bollinger Bands consist of three lines. The middle line is a simple moving average (an average which is constantly being recalculated). The upper and lower lines are each two standard deviations away from the middle line. In other words, according to normal distribution roughly 95% of the shenanigans the price gets up to should occur between the upper and lower bands.

What this means in a practical sense is that any time the price moves above or below the upper/lower lines, it is "increasingly likely" to rebound back towards the average.

TL,DR: Buy Low, Sell High.

Panda Out.