The Priceostat Indicator

Discussion in 'Chit Chat' started by Joe Doaks, Jul 1, 2012.

  1. Everyone knows what a thermostat does. Temperature is above the upper cooling temperature limit, the AC turns on. Temperature is below the lower heating temperature limit, the heat goes on. The thermostat itself restricts how tight you can set the range of the limits. In between both limits, nothing happens, so the HVAC doesn't wear itself out needlessly cycling. The thermostat drives the temperature into your comfort zone.

    The market is the exact opposite of a thermostat. The market itself sets the range of the limits, you do not control it. Inside those limits, nothing happens, but not by design or your will. Outside those limits, still outside your control, price runs wild, hot (long), cold (short), uncontrolled. The market drives price into your discomfort (nothing happening) zone.

    The attached screenshot shows my Priceostat. Black is the range the market sets, where nothing happens, outside my control, much to my discomfort. Orange is the trading measurement I make of when the market widens its range, but not tradeably. Red and green have obvious significance. You control nothing. You only sweat when it's hot and freeze when it's cold.
     
  2. ocean5

    ocean5

    You can just use round numbers or oscillator like stoch.
     
  3. All part of the asrenal.