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<p>[QUOTE="NorthKorea, post: 1727601, member: 29643"]Isn't it basically supposed to work similar to the bell curve, with 50 as the midpoint? So, a score of 41/45 wouldn't really be a buying indicator. Even if we assume that the true range is 20-80, that would still mean you'd need a shift of 20 points either way to be any sort of indication of something being a buy signal or sell signal.</p><p><br /></p><p>Everything within 1/2 sigma from the median (total 1 sigma spread) would be considered "normal conditions," which would mean anything within 33%-67% would be considered non-important. Even at 1 sigma (15.9%/84.1%), you'd see a tendency, not a strong indicator.[/QUOTE]</p><p><br /></p>
[QUOTE="NorthKorea, post: 1727601, member: 29643"]Isn't it basically supposed to work similar to the bell curve, with 50 as the midpoint? So, a score of 41/45 wouldn't really be a buying indicator. Even if we assume that the true range is 20-80, that would still mean you'd need a shift of 20 points either way to be any sort of indication of something being a buy signal or sell signal. Everything within 1/2 sigma from the median (total 1 sigma spread) would be considered "normal conditions," which would mean anything within 33%-67% would be considered non-important. Even at 1 sigma (15.9%/84.1%), you'd see a tendency, not a strong indicator.[/QUOTE]
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