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5 votes
Accepted

Why do Bollinger Bands typically use a standard deviation of 2?

More than 40 years ago, short, medium and long term referred to daily, weekly and monthly data. By the 1980s, the time frames evolved to hourly, daily and weekly and in the recent decades, even as ...
Bob Baerker's user avatar
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3 votes
Accepted

Calculating technical indicators on a shorter or longer price series: does it generate the same curve?

When you calculate an (n) period EMA, you start off by calculating a simple moving average for the first (n) days and you begin exponential calculations on day (n) + 1. In your example, it would be a ...
Bob Baerker's user avatar
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3 votes

What exactly is wrong with treating two conceptually similar trading indicators as independent pieces of evidence?

Imagine you want to take a political poll on how people feel about an issue. Your methodology is that you poll people in the same household, or maybe that live on the same street. Did you get a ...
Pete B.'s user avatar
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3 votes

What is the standard deviation for a stock?

If you assume that relative returns are normal (which many financial models do) then you'd take the standard deviation of the historical relative returns (not prices) over some time period. Since you'...
D Stanley's user avatar
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2 votes
Accepted

Why does the Moving Average indicator change values depending on the size of my view?

Here are some possible reasons for what cause differences in the data. A 200 period moving average means 200 periods not 200 days. If the data used is one minute data then the moving average would ...
Bob Baerker's user avatar
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1 vote

What kind of Indicator is this?

It a Step Indicator. It's impossible to know what the specific basis is from a graph. Check the source.
Bob Baerker's user avatar
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1 vote

Are the values for all technical indicators obtained from an asset's price?

Volume is not a technical indicator. It is a datapoint as are the open, high, low, close, change from yesterday. Technical indicators are derivatives of price and/or volume (rate of change, ...
Bob Baerker's user avatar
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