SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Dutch Central Bank Sale Announcement Imminent?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: philv who wrote (29460)7/29/2009 4:49:41 PM
From: sea_urchin  Read Replies (1) of 81507
 
Phil, talking about volatility, Bollinger Bands and probability, let me bring up a chart of our old friend -- the gold/oil ratio.



I argue that only when the Bollinger Bands get close together, as they were, will the speculation be out of the market. Only then will we be able to decide what the "normal" prices are.

As you can see on the chart, the Bollinger Bands are starting to get closer but they still have a long way to go to get anywhere near previous separation distances.

BTW, these Bollinger Bands are +/- 2 standard deviations from the mean (200 day moving average). This means that there is a 99% statistical probability that the distribution of all values will lie be between them. In other words, the Bollinger Bands "shape" the chart. Values which fall outside the Bands are unsustainable.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News