Not an indicator based trader but received this a while back and may be of interest to some. The indicator plots Sigma bands. (please dont ask what they are) Formula is not closed so after you import you can take a look. Snapshot is attached.

[metalhead]

why can't we ask what they are?

[brownsfan019]

Originally Posted by metalhead »

why can't we ask what they are?

Yeah, why can't we ask?



I believe he said don't ask.

So you ask.

[Soultrader]

I have no idea what they are... I dont use them. They were given to me by an institutional trader.

[waveslider]

Sigma bands are related to a standard deviation from a mean, usually a moving average (why not). The example has a very tight average and normally the average is wide, so that if price reaches 2 std. devs. then supposedly you have a 90% chance of a bounce. Why? It's stretched too far.

How many have tried to find indicators that show price has stretched too far? People trying to catch tops and bottoms. They go out of business quick.

Hurst was the one that made these famous, and I haven't read Hurst so feel free to correct me.

[metalhead]

So they're the same as Bollinger Bands then?

[waveslider]

OK correction, I got my indicator out and looked at it. Its a standard error around a linear regression average. So definitely different. If nothing else they look pretty.

[davla]

is it possible to post me a .txt file of this, as I dont use CQG and would really like to review this method.

Thanks very much.

If there is anything I can do for anyone please let me know
rgds
Davla