Re: Simple question on Bollinger Bands

["A.J. Maas" <anthmaas@xxxxxxxxx>]

Suprisingly, you of all staticians, are even missing the point.
==============================

Reference: click "Help"|"Index"|"Standard deviation:sample custom indicator:"

StDevs are dynamic. As such each day a single SD will change its value.
Per period it will also change in factor ratios, both
- vs the Price
and
- vs the MA of the Price that its based upon.
There aren't any pre-set ratios that can be calculated either, hence the dynamic part,
and therefore neither are there ones that can be adjusted.

Contrairy, the times an SD is being used can be adjusted to fit one's needs.
Bollinger uses 2 times and because of obvious reasons   -never getting any hits-
many others will use 1.5 for formula's StDev factor.

But never mind, all continue your dreaming from books and especialy..............
..........................do not practise.   

Regards,
Ton Maas
ms-irb@xxxxxxxxxxxxxxxx
Dismiss the ".nospam" bit (including the dot) when replying.
Homepage  http://home.planet.nl/~anthmaas


----- Oorspronkelijk bericht ----- 
Van: "Lionel Issen" <lissen@xxxxxxxxx>
Aan: <metastock@xxxxxxxxxxxxx>
Verzonden: zaterdag 28 oktober 2000 16:43
Onderwerp: Re: Simple question on Bollinger Bands


> Maas:
> Since the distribution of stock prices is log-normal, your entire discussion
> of standard deviations is flawed. Refer to Peter's book "Chaos and Order in
> the Financial Markets..." for documentation of this.
> Lionel Issen
> lissen@xxxxxxxxx
> ----- Original Message -----
> From: "A.J. Maas" 
> To: <metastock@xxxxxxxxxxxxx>
> Sent: Saturday, October 28, 2000 9:58 AM
> Subject: Re: Simple question on Bollinger Bands
> 
> 
> > Are we here discussing the Kaufman's definition for his method in
> calculating
> > an everyday very common Standard Deviation value?
> > Or anyone else's sd-calc methods?
> > ----------------------------------
> > Nope.
> > We are discussing here the use of the Bollinger Bands (which bands already
> > include the MSK Standard Deviation function in their formulas), that will
> have
> > to catch 90% of the Price, eg A.Torchio's original question:
> >          "Could anyone tell me the number of standard deviations allowing
> to
> >            contain within the bands 90% of price data?"
> >
> > Find the answer using MSK and Bartjens:
> >
> > In MSK click "Help"|"Index"|"Bollinger bands:sample custom indicator:"
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