Purpose: Identifies logical reversal points by depicting the natural vibrations of prices, suitable for futures, stocks, and commodities.
Description:
Hamzei Analytics’ Sigma Channels plot statistical bands around price, capturing the natural cyclical movements of markets using sigma (standard deviation) levels.
Features outer bands (e.g., ±2 sigma) for extreme reversal points, inner bands (e.g., ±1 sigma) for support/resistance, and a central band as the mean price trend.
Varies slightly across asset classes—indices like ES show mitigated volatility due to the law of averages, while stocks or commodities may exhibit wider bands.
Example: Price hitting the upper sigma band often signals a potential reversal, especially after a strong rally.
NinjaTrader Use:
Plotted as a series of bands on NinjaTrader charts: red outer bands, green inner bands, and a yellow central band.
Integrates with RadarScreen to scan for price interactions with sigma levels across instruments.
Customizable sigma levels and periods to adapt to different markets or timeframes.
Practical Example:
On an ES chart for June 25th, HAPISIGMACH marks the upper sigma band at 5340 around 09:30, signaling an overbought reversal point.
Price drops to 5200 by 11:00, offering a 140-point short trade opportunity.
