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Alberto Torchio was asking "how many standard deviations for 90 % of the
values between the lines".
1.28155 = 80 %
1.645 = 90 %
Kaufman & Michael & Jossart = 1.645
Maas = 1.8
----- Original Message -----
From: "michael" <mslist@xxxxxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Friday, October 27, 2000 4:22 PM
Subject: 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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