The Bollinger Bands set out the boundaries for the natural movement of the particular stock based upon its own unique characteristics. Running between the two boundaries is a moving average of the price that defines its central path. Are you seeing the analogy? If you look at the Bollinger Bands for different stocks you will see that each stock has its own unique path characteristics at the same time that they also exhibit a number of common traits. It is the same with you and me. You have a Path in life that is uniquely yours. And there are boundaries to what will feel like it fits in your life, on Your Path and that which feels foreign and out of place, out of alignment. In the video the presenter points out that when a stock price pushes outside the boundaries defined by its Bollinger Bands, a significant change can be expected. Likewise, when we act too far outside the natural boundaries of our unique nature we create the conditions for significant changes, positive or negative.
Note that if the Bollinger Bands and Moving Average are trending upwards over time, the downward fluctuations in price do not override the general upward trend. Often, when we are striving to attain some goal or realize some dream and we experience a setback, we give up thinking that it is a sign of failure. But as the Bollinger Bands show there is a natural oscillation (up and down, back and forth) even when we are making progress over time, even when we are being successful. The question you need to ask, the observation you need to make is, how is your life trending? When a stock price pushes too far beyond the upper boundary of its bands, we can expect a contraction. Why? Because the universe is constantly seeking balance (the center line). To be successful you have to build on a strong foundation. If you build or grow too fast it creates a crack in your natural boundaries and a contraction will occur. When the stocks price pushes too far below the lower boundary of its bands, we can expect a new opportunity for growth because total failure is a possibility but not a probability. It is like bending you knees and pressing yourself against the earth so that you can jump higher than every before. Everything vibrates! Everything has its ebb and flow! (The Kybalion)
Not only can we apply Bollinger Bands to individual stocks but we can also do a technical analysis on the entire NY Stock Exchange, or the S&P 500. Likewise, the Bollinger Bands analogy can be applied to you and me as individuals and to the human family as a whole. The Prime Directive of the Human Family is like the Bollinger Bands or natural boundaries for our interrelated, interconnected, and interdependent journey in life. The call to Create Peaceful Space is the ideal Moving Average of the human choice set. Right now, in this particular moment the trend of the Bollinger Bands and Moving Average of human choices is downward.
- If a stock price moves down, but the Bollinger Bands are still trending upward over time we expect a recovery in price.
- If the will of the people is strong, the spirit of the people vibrant, and the desire of the people is the universal good, then the bad decisions of a few do not represent a real threat to the upward movement of humanity over time (the price moves down but the trend is still up).
- If all technical indicators are trending downward the forecast for that stock is poor, very poor.
- If the will of the people is weak, their spirit broken, and the desire of the people is selfish self-interest then the bad decisions of the few are sure to annihilate the dreams of the people.
Living in alignment with the Prime Directive
is a choice to which everyone should be invited!
You have been invited!
You have been invited!
Create Peaceful Space!
Trust Your Process!
Peace, Love, and Health!
1 comment:
Wow, what a great analysis concerning the “Prime Directive of the Human Family” through the analogy of the Bollinger Bands and the Moving Average! If I have it correct, the activity of the Bollinger Bands (i.e., contraction and expansion) affect the moving average price. This is so as it is always moving from one extreme to the other. In other words, once the price action has run its course at the lower end, it will make its way to the upper level and vice-versa.
My way of understanding it is that the constriction of the bands at the lower end are like an individual(s) who is canoeing on a slow-moving river, and thus has to work that much harder to reach his destination. Visa-versa, expansion of the bands at the higher end are like an individual(s) who is canoeing on a fast-moving river, and thus is at a high risk of harm (i.e., leaks in canoe-sinking) if not keenly aware of the possible immediate and future obstacles.
You mention that The Prime Directive is like Bollinger Bands in creating natural boundaries for our interrelated, interconnected, and interdependent journey in life. Additionally, the call to Create Peaceful Space is the like the ideal Moving Average of the human choice set. From this perspective, I can see the advantage of attaining any personal goals and collective goals for humanity and its environment by making “progress over time”, hence establishing a firm foundation. This includes the realization that that there will be times of struggle, (constricted band) and times of risk where precaution is necessary to prevent harm to myself, others, and Earth’s environment (expanded band).
Within these boundaries of perceived Bollinger Bands, it is calming to know that the Prime Directive, through the process of natural oscillation, can assist me and others in creating a Peaceful Space (Moving Average) through the rivers of life!
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