/biz/ - Business & Finance

>>21599127
i'll look into it at least. currently im looking more into using the levels for bigger time frames so the data from the current day for daytrading doesn't influence it as much compared to the previous data. like if you only use 1 day then the current day is going to have a huge impact as it will wind up being ultimately half of the data by the end of the day, but 5 days or 10 days will likely give more viable levels of where the "extremes" are and what the general trend looks like. but there also needs to be some kind of balance because longer timeframes would imply that you might be holding it for longer (maybe even more than a day), but wider ranges mean you have more wiggle room in regards to how wide you cast your net with scaling into a position and how likely the price is to continue going against you before it corrects. it's why it is also probably safer to say you only take trades in the direction of the trend, so like maybe it's not a good idea to buy MU right now since it's getting to 2 SD on this graph but it's downtrending. also you might use FA and say "this is a good company so i want to use the SD to buy the dips, but i won't short it i'll only look for where i can go long".

it seems good in theory and has been working for me so far but im still in the process of experimenting with how to "optimize" it, especially for day trading or short-term swing trading (like 1-3 days).