A.I.M. Users Bulletin Board

[Conrad]

Clive,

On the Log Stochastic( LST) Parameter you suggested:

(log(current)-log(bottom))/(log(top)-log(bottom))

1 - ( (log(current)-log(bottom))/(log(top)-log(bottom)) )

I am missing the point as to how to use it.
Here I have Price Range Top to Bottom:

Top
0,8435
0,8285
0,8141
0,8001
0,7866
0,7735 Mid Point
0,7596
0,7457...Current Price = 0,7476
0,7318
0,7179
0,7040
Bottom

Price Step = 1,69 % change per step relative to the Mid Point, so the steps Up are the same percentage as the steps Down.

The Ln Stochastic Calculation gives



As I can't see how the Ln-Difference Ratio relates to the trade step size of the ladder I used, I have also calculated the EXP(Ln Ratio), but that also does not anything anything useful for me.

Then I tried the log base 10 and got this:

10^0,332364924 = 2,1496.....….use 2: for the LST
10^0,667635076 = 4,6519504....use 5: for the 1-LST

(Instead of the Napier version in the chart)

The current price is about 2 steps below the Mid Point price

How could I use these values to generate the Trade Size Ladder.

And why are there two different expressions for the LST Parameter?

If you had given one Parmeter I would have gussed that for the current proce I should execute a Buy with 5% of the Reserve at that point.

And as the price drops more the percentage multiplier of 5% gets larger... Right?