Skew Bands

[rayer]

Hi

I've recently come across an indicator called SKEW BANDS on advfn-charting. The problem is that i cant find any info on this indicator. Allegedly it has something to do with standard deviation in markets? does anyone know about this indicator and how to use it?
Any help would be much appreciated. CHEERS!

 

[Trader333]

Skew Function

Calculates the Skewness of a distribution for a set of values.

Function

Skew(PRICE,LENGTH)

Parameters

PRICE price on which the Skew will be based
LENGTH number of bars to use to build the distribution

RETURNS A numeric value containing the skewness of a distribution.

USAGE Skewness characterizes the degree of asymmetry of a distribution around its mean. Positive skewness indicates a distribution with an asymmetric tail extending toward more positive values. Negative skewness indicates a distribution with an asymmetric tail extending toward more negative values.



Paul

 

[rayer]

Thanks for your reply Paul. Have you found Skew to be any real use in your own trading?
It seems a little complicated!

 

[Trader333]

I dont use skew at all and was just responding to your request for information.


Paul