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Mr Maas, Alberto Torchio asked "90% of price data" and NOT "90% of +/- 2
std". THAT'S NOT HIS QUESTION, are you deaf ?
Q = number of standard deviations needed to have 90 % of the price data
inside the bands.
What do you want to show here ? That your verbosity, stubborness and
obstination are proportional to your ignorance ?
----- Original Message -----
From: "A.J. Maas" <anthmaas@xxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Saturday, October 28, 2000 4:34 AM
Subject: Re: Simple question on Bollinger Bands
> The Law According to Bartjens:
> -------------------------------------------
>
> Bollinger Bands (tightend to 90%) - John Bollinger
>
> {First, catching the BB's 100% of Price movement :}
> UpperBand:= Mov( C,20,S ) + 1*( 2 * ( Std( C,20 ) ) );
> MiddleBand:=Mov( C,20,S );
> LowerBand:= Mov( C,20,S ) - 1*( 2 * ( Std( C,20 ) ) );
> BandsWidth:= UpperBand - LowerBand;
> {Second, now for catching 90% of Price movement}
> BB100:= 1*BandsWidth;
> BB90:= 0.9*BandsWidth;
> {broken up, this then is equal to :}
> sUpperBand:= mov( C,20,S ) + 0.9*( 2 * ( std( C,20 ) ) );
> sMiddleBand:=mov( C,20,S );
> sLowerBand:= mov( C,20,S ) - 0.9*( 2 * ( std( C,20 ) ) );
> sBandsWidth:= sUpperBand - sLowerBand;
> sUpperBand;
> sMiddleBand;
> sLowerBand;
> sBandsWidth;
> {Third, now to proove all is right, plot the BandsWidth's BB100%}
> BB100;
> {and plot the BB90%}
> BB90;
> {and plot the final difference outcome in $}
> BB100-BB90;
> {and plot the final difference outcome in %}
> (BB100-BB90)/(BB100*0.01)
> -------------------------------------------
>
> Just Copy+Paste into the Indicator Builder, and plot Bartjens Law.
> Then:
> - hold the mouse pointer onto one of the plotted lines, and peek in
> the small Tool Tips' Price window
> or
> - click the actual Data Window button.
> The formula's to create the 90% Upper and Lower Bbands are then also
> printed above, using the 0.9 factor.
> Note: That the sBandsWidth is plotted over the BB90 !!!!!.
>
> >From the above sound method, the 1.8 factor mentioned in the previous
mail
> and below formula for the MSK stdev function use is thus {naturaly}
correct.
>
> 90%{2*0.9}=1.8*stdev(da,pds)
>
> Can't beat Bartjens !!!!.
>
> Regards,
> Ton Maas
> ms-irb@xxxxxxxxxxxxxxxx
> Dismiss the ".nospam" bit (including the dot) when replying.
> Homepage http://home.planet.nl/~anthmaas
>
>
> ----- Oorspronkelijk bericht -----
> Van: "michael"
> Aan: <metastock@xxxxxxxxxxxxx>
> Verzonden: vrijdag 27 oktober 2000 15:22
> Onderwerp: RE: Simple question on Bollinger Bands
>
>
> > I don't know how come there are so many opinions on this. 1.28155 is
the
> > standard deviation equivilant of 90%. If you plotted a 1.28155 standard
> > deviation line above prices on a chart, 90% of the prices should
> > theoretically fall below that line. If the market follows the bell
curve
> > then this would be true.
> >
> > Since you are probably using a lower standard deviation line also, the
> > bottom line says that 90% of all values will be above the lower line.
That
> > leaves two 10% tails. So in fact 80% of the values should occur in
between
> > the 2 lines.
> >
> > If you want to know the standard deviation that is equivilant to 90%, I
> > gaurantee it is 1.281.
> >
> > If you want the area between the 2 lines to equal 90% then you need the
> > standard deviation that correlates with 95%. This will leave 5% tails
on
> > the normal distribution curve. The standard deviation that correlates
to
> > 95% probability is 1.645.
> >
> > Michael
> >
> >
> >
> >
> >
> > -----Original Message-----
> > From: owner-metastock@xxxxxxxxxxxxx
> > [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of A.J. Maas
> > Sent: Thursday, October 26, 2000 10:12 PM
> > To: Metastock-List
> > Subject: Re: Simple question on Bollinger Bands
> >
> >
> > The mean=middle=0
> > and
> > 100%=da width difference between "+1 stdev"{+100%} and "-1 stdev"{-100%}
> > thus
> > 100%{2*1}=2*stdev(da,pds) {width is then mean + 1*stdev up +1*stdev
down}
> > and
> > 50%{2*0.5}=1*stdev(da,pds)
> > then
> > 90%{2*0.9}=1.8*stdev(da,pds)
> >
> > 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"
> > Aan: <metastock@xxxxxxxxxxxxx>
> > Verzonden: dinsdag 24 oktober 2000 4:23
> > Onderwerp: Re: Simple question on Bollinger Bands
> >
> >
> > > I cant find my statistics book, but I think its close to 2 std dev.
> > > Lionel Issen
> > > lissen@xxxxxxxxx
> > > ----- Original Message -----
> > > From: "Alberto Torchio" <atorchio@xxxxxxxxx>
> > > To: "Realtraders" <realtraders@xxxxxxxxxxx>
> > > Sent: Monday, October 23, 2000 2:27 AM
> > > Subject: Simple question on Bollinger Bands
> > >
> > >
> > > > Dear Listmembers,
> > > >
> > > > I have been asked a simple question on Bollinger Bands and was
unable to
> > > > answer...
> > > > Could anyone tell me the number of standard deviations allowing to
> > contain
> > > > within the bands 90% of price data?
> > > >
> > > > Alberto Torchio
> > > > Torino, Italy
> >
> >
> >
>
>
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