However it does add some noise to the chart and makes it slightly difficult to check for crosses. Un-smoothing the RSI and stochastic will not affect the analysis or price targets. These are calculated based on the next probability zone located immediately above and below the current trading zone of the stock.įor those who like to assess RSI and Stochastic for divergences, there is an option in the indicator to un-smooth the stochastic and RSI lines. It also provides the next bull and bear targets. whether the stock is trading in the 68% probability zone or the outer 13, 2.1 or 0.1 probability zones), as well as the overall probability of a move up or down. This data table provides you with the current probability range (i.e. The indicator also provides a data table. If the stock has a bullish cross and is trading in a low probability bearish range, it will print the price target for a regression back to the upward mean. The inverse is true if it is a bullish cross. Its the current mean at the time of the bearish cross. The pullback price is the "regression to the mean" assumption price. IF this bearish cross happens while the stock is trading in a low probability upper zone (anything 13% or less), it will trigger a label to print with a pullback price. It will signal a bearish cross (red arrow) to signal that some selling or pullback may follow. When the Yellow Line (Stochastic Line) crosses over the White Line (the RSI line), this is a bearish indication. It represents the smoothed version of the RSI price prediction of the most likely close price. This represents the smoothed version of the stochastic price prediction of the most likely close price. Yellow line: This is the stochastic line. With this information it does the following: It also assess the normal distribution range the stock is trading in. This works by applying a regression based analysis on both Stochastics and RSI to attempt to predict a likely close price of the stock. This is an indicator that combines RSI and Stochastics with probability levels. It is somewhat experimental but I have had some good success with it so I figured I would share it! 2016) and co-author of a text book entitled "Financial Mathematics: An Introduction" in Narosa, Nov. He is co-author of a text book entitled "Introduction to Probability and Stochastic Processes with Applications" in John Wiley (US Edition, New Jersey, June 2012) and (Asian Edition, New Delhi, Jan. He is an Associate Editor of International Journal of Communication Systems and an Associate Editor of Opsearch. He has published over 45 papers in refereed international journals and over 20 papers in refereed international conferences in these areas. His research interests include applied probability, queueing theory, stochastic modeling, performance analysis of computer and communication systems and financial mathematics. He has held visiting positions at the Duke University, USA, Emory University, USA, University of Calgary, Canada, University of Los Andes, Bogota, Colombia, National University of Colombia, Bogota, Colombia, University of Verona, Verona, Italy, Sungkyunkwan University, Suwon, Korea and Universita degli Studi di Salerno, Fisciano, Italy. He appointed as 'Jaswinder & Tarvinder Chadha Chair Professor' for teaching and research in the area of Operations Research from May 2010 to July 2015. During July 2014 and August 2017, he served as Head, Department of Mathematics. He has been with the Department of Mathematics, IIT Delhi, since 2003, where he is currently a Professor, Department of Mathematics and joint faculty of Bharti School of Telecommunication Technology and Management. From 2002 to 2003, he was a research associate at the TRLabs, Winnipeg, Canada. From 1999 to 2002, he was a post-doctoral fellow at the Department of Electrical and Computer Engineering, Duke University, USA. degree in Mathematics from the Indian Institute of Technology Madras, in 1999. degree in Applied Mathematics from Anna University, Madras, India, in 1994 and Ph.D.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |