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Strategies & Market Trends : Predictions + Projections

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To: Steve Lee who wrote (4)1/22/2002 5:34:35 PM
From: MechanicalMethod  Read Replies (1) of 26
 
It predicts 5 prices for each bar. The easiest prediction is the signal line.

min+max H... along with min+max L... are offset from the signal based on historical min+max offset ...those excursions from the signal line that have been carefully measured and filtered for outliers.

pretty simple ehh!

It plots as 5 lines... channel lines. ya got your signal line in the center. ya got your min+max Low... ya got your min+max High.

So ask yourself, is price behaving well within these boundaries? Is price contained? If so then it's working. It should work consistently until dir reverses when it take's 1 bar to adjust itself to the new dir. The fact that a bar misbehaves verses what it's projected to do indicates that's the bar that will reverse the dir.

A bar in the lower end of the projected zone has a high probability of moving to the upper end of the zone. It's also on the brink of signaling a dir reversal. Optimal entry? ...low risk to the failure point and lots of room to run ...to the projected normal H.
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