mrtools wrote:Sat May 12, 2018 3:51 pm
This is Pdf Ma with floating levels....
many thanks to MrTools, Mladen etc for many good ideas of indicators.
This pdf ma is another excellent indicator.
However, even an excellent indicator does not help if we don't know how to use it in trading. I find this lack of information on uses of indicators widespread in this forum. Even a very simple indi such as RSI has many dozen possible uses in trading, not all traders are aware of them.
I want to use few indis in my trading, but I want to understand them well.
Some indis have many parameters, and we can't guess the meaning of many of them.
Could anybody explain how to use pdf ma?
Pdf is of a random variable, what is the random variable shown by the indi?
Is the main signal of the indi the mean value of the pdf?
Why are the levels mostly on the opposite side of the price, unlike bollinger bands where you have x standard deviation on both side?
Many thanks.
The link to the wikipedia article is too general.