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I was referring to Chande's StochRSI.
Mov((RSI(13)-LLV(RSI(13),13))/(HHV(RSI(13),13)-(LLV(RSI(13),13))),13,T)*100
a number of people have worked up variations of it.
Richard Estes
-----Original Message-----
From: Steven Buss <sbuss@xxxxxxxxxxx>
To: Richard Estes <restes@xxxxxxxxx>; Harvey Pearce <hpearce@xxxxxxx>
Cc: Metastock-list <metastock-list@xxxxxxxxxxxxx>
Date: Sunday, December 07, 1997 8:06 AM
Subject: Re: Oscillator and Trend Following Indicator Integration?
>Thanks Richard,
>
>I finally had time to look at your suggestions.
>
>The Stoch(13) appears to yield a picture close to a Weekly Stoch(5). The
>weekly Stoch view is smoother though.
>
>Steven Buss
>Walnut Creek, CA
>sbuss@xxxxxxxxxxx
>
>-----Original Message-----
>From: Richard Estes <restes@xxxxxxxxx>
>To: Steven Buss <sbuss@xxxxxxxxxxx>; Harvey Pearce <hpearce@xxxxxxx>
>Cc: Metastock-list <metastock-list@xxxxxxxxxxxxx>
>Date: Sunday, November 23, 1997 6:34 AM
>Subject: Re: Oscillator and Trend Following Indicator Integration?
>
>
>>I suggest MACD(13,34,89) or 89 time series MA for long term trend. The
>>oscillator aspect usually gives a 5-10 day trade with say CCI(13) with 200
>>and -150 triggers. for longer terms, CCI(40) may stretch it out.
>>A StochRSI(13) is used by many to go in and out up the right side of the
>>mountain.
>>
>> What you failed to say is what type trader or investor you are. Say a
>stock
>>goes from 15 to 55 in a year, would you set tru the corrections to get
>>there? Or do you picture 6-8 trades? Your individual mindset decides how
>you
>>would use the indicators. IMO we have the best under $500 system building
>>software out there. Play with it, build YOUR system, so you trust it. When
>>opinions say the market will crash or soar, you can turn a deaf ear
because
>>your system will provide exit/entry points on your stock. It is inline
with
>>your view of reality.
>>
>>For those that don't know who they are, they face a hardship of finding
out
>>with real money. For those without a plan, get one. Even the guy that puts
>x
>>dollars in a dinosaur every year can come out ahead but he has to have
that
>>mindset and plan.
>>Richard Estes
>>-----Original Message-----
>>From: Steven Buss <sbuss@xxxxxxxxxxx>
>>To: Harvey Pearce <hpearce@xxxxxxx>
>>Cc: Metastock-list <metastock-list@xxxxxxxxxxxxx>
>>Date: Saturday, November 22, 1997 10:30 PM
>>Subject: Re: Oscillator and Trend Following Indicator Integration?
>>
>>
>>>Thanks to Harvey and to all who have replied to my question.
>>>
>>>The "received wisdom" does seem to be that oscillators work best in
>trading
>>>range markets and that trend following indicators (by definition) work
>best
>>>in trending markets. And this makes sense.
>>>
>>>But I wonder about one thing...
>>>
>>>Don't oscillators also work well in trending markets when the market is
in
>>>an extreme position (as defined by an oscillator) AGAINST the trend?
>>i.e.,
>>>in an up-trending market, when the stochastic is oversold, then, the
>>>stochastic indicator does provide information of significant value?
>>>
>>>So, the restated "received wisdom" principles might go something like
>this.
>>>
>>>- Trend following indicators work well in trending markets.
>>>- Trend following indicators don't work well in trading range markets.
>>>- Oscillators work well in trading range markets.
>>>- Oscillators also work well in trending markets when they have extreme
>>>values that run AGAINST the trend.
>>>- Oscillators don't work well in trending markets when their value is
>>>consistent with the trend.
>>>
>>>Thoughts?
>>>
>>>P.S. The Elder insight on this is that the trend is best found by
>>examining
>>>a trend following indicator at a higher level timeframe than one wants to
>>>trade. (e.g., trend established by weekly bars for trade timing
>determined
>>>by daily bars)
>>>
>>>Thoughts?
>>>
>>>Steven Buss
>>>Walnut Creek, CA
>>>sbuss@xxxxxxxxxxx
>>>
>>>-----Original Message-----
>>>From: Harvey Pearce <hpearce@xxxxxxx>
>>>To: Steven Buss <sbuss@xxxxxxxxxxx>
>>>Cc: Metastock-list <metastock-list@xxxxxxxxxxxxx>
>>>Date: Saturday, November 22, 1997 10:25 PM
>>>Subject: Re: Oscillator and Trend Following Indicator Integration?
>>>
>>>
>>>>Steven/
>>>>
>>>>You bring up a point that I've been toying with. I was hoping that one
>>>>of the more experienced members would reply, but since they haven't I'll
>>>>make my own low grade input. I'm a beginner with a greater investment
>>>>in books than securities, so evaluate this accordingly.
>>>>
>>>>The received wisdom is that oscillators work with trading ranges but not
>>>>with trends. If this is true then it is more a case of switching
>>>>between oscillators and trend-following indicators than of combining
>>>>them.
>>>>
>>>>There is a commercial system called Catscan. The developer, Randy
>>>>Stuckey, claims that it is two systems in one: one for choppy markets
>>>>and one for trends, with a choppiness indicator to switch between them.
>>>>
>>>>Perhaps Stochastics, which tells us where we are now relative to where
>>>>we've been, could be used in this way. Once it pegs at one end you're
>>>>in a trend. Elder points out that it is easier to distinguish between
>>>>trends and trading ranges when you're looking back at a completed chart
>>>>than at the "hard right edge" as you try to get a glimpse of the future.
>>>>
>>>>I've tried to make an indicator of my own to show what percentage of the
>>>>lookback period has had highs greater than the current high, but ran
>>>>into limitations of the MS Indicator Builder. (We need a Visual Basic
>>>>add-on). I'll post an accompanying message to see if anyone can help.
>>>>
>>>>For references I'd recommend the following.
>>>>
>>>>Trading for a Living, by Alexander Elder.
>>>>Technical Analysis of the Futures Markets, by John Murphy.
>>>>Schwager on Futures: Technical Analysis, by Jack Schwager.
>>>>
>>>>Harvey Pearce, Victoria, B.C., Canada
>>>>
>>>>=====================================
>>>>
>>>>Steven Buss wrote:
>>>>>
>>>>> My frustration the last few days led me to try to get a handle on the
>>>>> Oscillator (e.g., Stochastic) vs. Trend Following (e.g., moving
>average)
>>>>> indicator issue.
>>>>>
>>>>> Maybe I've seen someone lay out a general strategy for understanding
>how
>>>>> these two indicator types can be used together and just don't
>>>remember...I'm
>>>>> sure there are multiple approaches.
>>>>>
>>>>> But I did come across Alexander Elder's "Double-checking beats
>>>optimizing"
>>>>> article in a little booklet he sells ("Trader's Guide to Day-Trading")
>>at
>>>>> his site for $10. If I had read (and understood <g>) this article
just
>>a
>>>>> few weeks ago I would have saved myself some tension as well as a few
>>>>> dollars...His site is www.elder.com.
>>>>>
>>>>> Anyone know of anyone else who has specified a clear view of HOW
>>>Oscillator
>>>>> vs. Trend Following Indicators can be used together?
>>>>>
>>>>> Steven Buss
>>>>> Walnut Creek, CA
>>>>> sbuss@xxxxxxxxxxx
>>>>
>>>
>>
>
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