Interesting -- I'll have to look for that article. I've been playiing around with another way to try to eliminate sell signals when the bands are close together: std(c,21,1.6)>(.x*c), or as some would write it:
1.6* Std(c,21)
x, of course, is a variable, and I just can't find a number that works well with lots of stocks. Another red herring of a formula, I guess.
What I'm really trying to do -- and I'm submitting a newbie article on it for TAOTN -- is combine StochRSI with the bands, then limit the number of sell signals to when the bands are wide, because I get a lot of misleading signals when they're close together. The newbie article is going to be hopelessly flawed, but with any luck, no one will read it.
You'll note that those durn Fibonacci numbers are insinuating themselves into my formulas. I'm reading Fisher's book, "Fibonacci Applications and Strategies for Traders." Essentially, I think we can conclude from the book's observations about pyramids, the stock market, and Fibonacci numbers, that the market is one great pyramid scheme. Sorry, Fibo fans, I'm trying to take Fibonacci numbers seriously. I'm even adding some Fibo to my TA diet. |
