Posts Tagged ‘speculations’

Countertrend Indicator

Friday, December 11th, 2009

Use the ARIMA confidence bands to determine overbought/Oversold levels. Not only. can a long position be entered when prices penetrate the lowest 95% confidence band. but they can be closed out when they return to the normal 50% level. A conservative trader will enter the market only in the direction of the ARIMA trend forecast. If the trend is up, only the penetrations of the lower band will be used to enter new long positions.