You mean the OBOS Indicator?
Overbought/oversold
- Thread starter KGTrader4
- Start date
2 SMAs (-1SD and +1SD) around the smoothed mean (0SD; ie. in total 3 SMAs) forming a "channel" is good, IMO.
The height can be made a range going from 100 (top) to 0 (bottom), and the middle band being 50, so then one immediately can read where the current stock price lies in this range between 0 to 100. Above 70 or so would mean overbought, and below 30 oversold, similar to the standard interpretation of the RSI indicator.
See also Bollinger Bands etc.
The height can be made a range going from 100 (top) to 0 (bottom), and the middle band being 50, so then one immediately can read where the current stock price lies in this range between 0 to 100. Above 70 or so would mean overbought, and below 30 oversold, similar to the standard interpretation of the RSI indicator.
See also Bollinger Bands etc.
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Couldn’t you look at Bolinger bands with standard deviation for RSI or all of them and then look at volume separately for confirmation?
I don't think there is one indicator that is good by itself. To MacBookPro's point, there is an art / craft to this game.
Can’t disagree with the bonded part
No.
I don't really care for RSI...sure it looks great in hind sight but on the hard right edge it just didn't do much for me. Admittedly I could have put more effort into it though to develop probabilities...ex: RSI>80 for "n" units of time are this likely to revert this much...experimenting with different time frames until you have a set of probabilities that merit some level of confidence...then have a plan b of what likely happens if you are wrong and the appropriate reaction etc...
I do like Keltner channels...more in the realm of volatility but mean reversion after momentum slows sounds pretty similar to overbought/oversold. I have also come to accept that Price action is a legit skill that is really worth developing. Accumulation/distribution is worth looking into as well IMO...Is the price trending up or down? accumulating or distributing? Pretty fundamental stuff...meaning it is extremely important.