So would this apply to the price data or the BB?
--- In [email protected], "jeffro861" <[EMAIL PROTECTED]> wrote:
>
> I couldn't help myself... might as well take the natural log of the
> price series you're dealing with-- price data follows more of a log
> distribtion than a normal distribution (log(c)). This become more
> apparent in parabolic moving stocks and longer time frames for
> calculating std. dev. There are other ways to deal with the
> asymetric price distributions, but that is entirely too much
> explanation for this dialogue.
>
> good luck
>
>
> > Hey all - I'm trying to put together an indicator based on Standard
> > Deviation. The difference, from, say Bollinger Bands in this case
> is
> > that I want to show the Std Dev from a moving average in terms of
> 1,2)
>
> > and 3 standard deviations from mean, where mean is an N day moving
> > average. So, the mean would be represented by a constant straight
> > line on a chart, and then a line would go up/down around it.
> >
> > For an example, check this out:
> > http://www.indexindicators.com/charts/sp500-vs-sp500-50d-rsma-
> params-3y-x-x/
> >
> > I really don't know how to approach this - anybody have any
> > thoughts/ideas? Or maybe someone has done it before (or it's in AB
> > already) and I just haven't found it.
> >
> > Thanks!
> >
>
