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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: Win-Lose-Draw who wrote (127753)	1/6/2006 3:56:06 PM
From: the-phoenix	Read Replies (1) \| Respond to of 209892

I don't actually use this based on absolute values of the ratio, just as I don't put any stock in absolute levels in the $VIX. Rather, I track both these statistics as oscillators that have tendencies toward normality (their values tend to be bounded by 2-3 standard deviations most of the time and they revert back to the mean quite regularly.) They both "trend" over some periods of time, but I don't think these trends are predictable or helpful. However, the oscillations to the range extremes, as defined by standard deviations, are quite good predictors of market direction. All IMHO, of course.