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The transformation from the three dimensional distribution of eqn (4128) to the two dimensional distribution of eqn (4130) is discussed in Exercise 410 The joint horizontal position error density in the x coordinates is px = 1 exp 2 1 2 x2 x2 1 + 22 2 2 1 2 2 (4131)

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Nov 8, 2012 · PDF Focus.Net - How to convert PDF to Word using C#. SautinSoft.Duration: 4:17 Posted: Nov 8, 2012

used to calculate the probabilities that can then be acted upon They create places where there is a high probability of success When you find one of these places, you act at that time What they don t do, he cautions, is provide continuous advice: Can you look at any given point in time at Bollinger Bands and know what to do The answer, at least in my practice, is no He says that Bollinger Bands are not forecasting tools They can t predict, for example, what the Dow will do on a certain date Nevertheless, he acknowledges that within the Bollinger Band setups there are obvious targets and obvious projections that can be made It s especially useful to see whether a setup is working or not But I wouldn t call that market forecasting One phenomenon that is unique to Bollinger Bands is that it tends to stay overbought or oversold for long time periods We call that a walk up the bands, he explains, or a walk down the bands It s perfectly normal In fact, that is the sort of activity that is expected in a trending market You may have to go for a long time, or a very short time, before you find a usable setup If someone gets impatient because there s no immediate buy or sell signal, he suggests it s a failure of the person, not the tool He adds: The biggest mistake that people make with my indicator is they assume that any tag of the upper band is an automatic sell, and that any tag of the lower band is an automatic buy That s completely wrong Another problem is that people get fixated on certain signals even though the market is going against them As a result, they go through a lot of pain The key, Bollinger says, is to be flexible Think of these trading bands as a component of a system analysis that also includes trend and sentiment information It s more useful to think of my trading bands as part of a whole trading system rather than try to be too simplistic.

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(4132)

In Bollinger s opinion, the best way to use his indicator is by experimenting with the defaults Fool around with the defaults as widely and creatively as possible, he suggests What could happen is you might stumble across something that works really well, a combination of rules or bands that fits your trading style

Circular Error Probable (CEP) is the radius of the circle centered on the correct location that contains 50% of the expected horizontal position errors The R95 statistic is the radius of the circle expected to contain 95% of the horizontal position errors The analysis to de ne both of these statistics is the same Therefore, we will perform the analysis for probability [0, 1] At the conclusion of the analysis, we can compute the results for = 05 or 095 Let = P rob{ v c},

then for S, U, , de ned as in the previous section, = P rob{ v c} = P rob{w P 1 w c2 } = P rob{x

Eventually you could find that sweet spot that works really well for you One way to find it is by changing the moving averages from simple to exponential to weighted, or change the number of periods, or the number of bands Then try it on 10-minute, daily, hourly, weekly, and monthly charts

x c2 }

The probability that v falls in the circle with radius c can be found, in polar coordinates, as = P rob{ v c} = =

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