I have revised the coefficients of the formulas used to calculate the top and bottoms in the two lines of this model: Fair Price Line and Top Line that you already know.
Since someone asked me if this model is reliable or not, I decided to include the error bands lines in the indicator.
For the calculation of the Top line the error is significant because I used only 3 points, we have only 3 significant tops for the calculation and for now it's impossible to do better then this.
Putting theory into practice, you can evaluate to open a long term trade when price is within the error bands and use as confirmation classic TA tools (oscillators, trend lines, etc. ..) as stop loss it could be a smart idea to use the lower line with 95% confidence because if bitcoin goes below this lower error line then there would be something fundamentally wrong in the model and it would be wise to apply a stop loss.
I've removed the experimental GMM (Gaussian Mixture Model) from this new 1.1 version to keep things simple, GMM model is still available with the old version.
From now on i don't think i'll change this indicator again, it'll remain as is for the next 12/24 months and updated only if there will be new important top/bottom.
Since someone asked me if this model is reliable or not, I decided to include the error bands lines in the indicator.
For the calculation of the Top line the error is significant because I used only 3 points, we have only 3 significant tops for the calculation and for now it's impossible to do better then this.
Putting theory into practice, you can evaluate to open a long term trade when price is within the error bands and use as confirmation classic TA tools (oscillators, trend lines, etc. ..) as stop loss it could be a smart idea to use the lower line with 95% confidence because if bitcoin goes below this lower error line then there would be something fundamentally wrong in the model and it would be wise to apply a stop loss.
I've removed the experimental GMM (Gaussian Mixture Model) from this new 1.1 version to keep things simple, GMM model is still available with the old version.
From now on i don't think i'll change this indicator again, it'll remain as is for the next 12/24 months and updated only if there will be new important top/bottom.