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Sidebar | SEP 1996
SIDEBAR: Standard Error Bands - Technical Analysis, Inc.
Sidebar: Standard error bands by Thom Hartle Microsoft’s Excel comes with statistical formulas that can be used to create the standard error bands and the related indicators (sidebar Figure 1). The following example uses Microsoft stock price series; column A is the date. Column B is a numerical series for representing the X-axis for calculating the statistical indicators. We are not using the date column for the X-axis because the weekends will be counted in the calculation of the statistical indicators. The difference between Friday and Monday is three periods to Excel, not one, and therefore, the statistical indicators will use column B. In cell B2, enter the number “1,” then in cell B3, enter the following formula and copy down: =B2+1
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