Engineering Alpha

Engineering Alpha

Statistical Overbought & Oversold Levels on Technical Indicators.

Mean-Reversion Trading with Technical Indicators.

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Dec 26, 2021
∙ Paid

We are constantly told about oversold and overbought levels as fixed numbers, but as markets move, so do their structure and statistical properties. We need to find a more objective and dynamic way to detect oversold and overbought levels on technical indicators. 

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