LULU

#LULU: This financial channel model hasn't changed in 25+ years and has no open, adjustable, optimizable, data-fittable, curve-fittable, or bullshittable paramater. The line acts as a tertiary boundary or a potential well, defining the outermost limit of a system's "normal" behavior. By scalar-multiplying the system's central tendency's deviation by a volatility factor, the model helps a trader to better guess exactly where the most extreme (yet statistically plausible) downward excursion target lay during energetic, high-volatility events. When a price reaches this boundary, it's a usually a good time to bet on a high-probability mean reversion to a lower energy state or, (conversely) an imminent phase transition in the system's dynamics. A failure of this level becomes the quintessence of "something serious".

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