Stochastic Oscillator Buy when the Oscillator (either %K or %D) falls below a specific level
(e.g., 20) and then rises above that level.
Sell when the Oscillator rises above a specific level (e.g., 80) and then falls below that level;
Buy when the %K line rises above the %D line and sell when the %K line falls below the %D line.
Piecewise linear regression is used when the regression coefficient varies depending on the range of the independent variable. Suppose we regress mortality rates on the age of the policyholder. We assume that from ages 0 to 60, the age of the policyholder has a minor effect on mortality rates, but from ages 60 to 100, the age of the policyholder has a large effect on mortality rates. This section shows how to write the regression equation. |