Sive Morten
Special Consultant to the FPA
- Messages
- 18,695
Hi Ochills,
I think that it is not neccesary to recalculate OB level. In fact, we use 85-100% of OB because this is not predefined number, this is mostly some range. Most recent DOSC tops and bottoms could be slightly lower or higher than the lowest and highest ones, but if OB number stands in 85-100% range of your calculation, it will mean that market overbought or oversold.
From time to time you can follow the market and exclude some "too far at the back" peaks and bottoms, because volatility on the market also is changing and it could happen that market will not reach at all the levels that were somewhere in the past. OB/OS level could become as narrower as wider. Use 150-180 bars of history, that should be enough for calculation.
I think that it is not neccesary to recalculate OB level. In fact, we use 85-100% of OB because this is not predefined number, this is mostly some range. Most recent DOSC tops and bottoms could be slightly lower or higher than the lowest and highest ones, but if OB number stands in 85-100% range of your calculation, it will mean that market overbought or oversold.
From time to time you can follow the market and exclude some "too far at the back" peaks and bottoms, because volatility on the market also is changing and it could happen that market will not reach at all the levels that were somewhere in the past. OB/OS level could become as narrower as wider. Use 150-180 bars of history, that should be enough for calculation.
Good Morning Commander in pips. First thanks Immensely for Ur priceless gift and your great consistent.
pls Commander last week GBP/USD reaches overbought on daily time frame and my DOSC does not move above the previous high, despite the fact that DOSC touch the OB level. In forex Military school U said one should recalculate level of OB/OS if DOSC create a new over bought level, but DOSC does not move above the previous level I use for the calculation of recent OB reached. So do I recalculate and if yes, Current oOB level cannot be use because is not higher than the previous.
thanks as usual