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The problem comes with being able to mark Fridays so you can go back
from Friday to Friday with the exploration. If done on daily data. Can
it be done. Sure. You could start with physically marking the friday (by
date) and then go back every 5 days from there. Of sourse you would have
to change it every Friday. You might be able to mark any Friday and then
use a variable that becomes incramented 1 every day after. But is
modulated by 5. Ex 1 mod 5 = 1, 3 mod 5 = 3, 6 mod 5 = 1. Replace the
1,3,6,etc with the incramented variable. These are just a few ideas to
get you thinking.
Harley
Steven Buss wrote:
> You may remember that I am looking at real time prices via another
> product
> on a trial basis. I'm using Weekly and Daily bars in Metastock and
> then
> Hourly and 10-minute bars in the other product.
>
> In staring at these various multi-period bars (each with associated
> stochastics) for awhile, my current thinking is that one can also
> think
> about a stochastic value at one period confirming the move of the
> stochastic
> at another period. That is to say, if you want to know the
> significance of
> a 10-minute bar stochastic move, say above 20 or below 80, then, look
> at the
> hourly and daily (even weekly stochastic chart.) It seems to me that
> the
> value of the stochastic as an indicator is enhanced by this
> multi-period
> view. (By the way, this is also interesting to look at from the point
> of
> view of MACD and I'm assuming a host of other indicators.)
>
> You may remember that I posted a note recently about an article by
> Alexander
> Elder on the importance of this multi-period view. It was that
> article that
> got me on this particular track. From what I've seen so far, this
> might
> well be a very important insight and one that Metastock in its current
>
> implementation doesn't really help with. (That is, you can't write an
>
> indicator or exploration or system test that references data from
> multiple
> time periods.)
>
> Which brings me to my question: (All my posts that provide info are
> really
> disguised attempts to learn something from someone else.) Has anyone
> written an indicator (e.g., a stochastic or MACD) using daily data
> that
> relatively PRECISELY replicates the values of these indicators at the
> weekly
> level? My belief is that the mere increasing of the number of bars
> within
> the indicator doesn't cut it. (e.g., Take a look at the DJIA daily
> chart
> with a stoch(26,3) and then the same DJIA on a weekly with a
> stoch(5,3).
> They're not the same thing.)
>
> Am I wrong in believing that one can't write a stochastic against
> daily data
> that relatively PRECISELY replicates the look of a stochastic on a
> weekly?
>
> Steven Buss
> Walnut Creek, CA
> sbuss@xxxxxxxxxxx
>
> -----Original Message-----
> From: Frank B. Gaylord <fbg@xxxxxxxxxxxxxx>
> To: metastock-list@xxxxxxxxxxxxx <metastock-list@xxxxxxxxxxxxx>
> Date: Monday, December 08, 1997 1:08 AM
> Subject: Re: MIRAT Long and a Faltering Stoch: A Question
>
> >At 07:17 AM 12/7/97 +0000, Steven Buss wrote:
> >>The S&P 500/100 show the daily Stoch(5) and Stoch(13) both well
> above 80
> and
> >>the weekly Stoch(5) also well above 80 (and looking like the daily
> >>Stoch(13)).
> >>
> >>The DowInd, Nasdaq Comp, and Nasdaq 100 stochs of the type noted
> above are
> >>below 80 and rising.
> >>
> >>I assume that this MIRAT Buy Signal, then, would be based on market
> action
> >>in which the Stoch for the two S&P indices would remain above or
> close to
> 80
> >>for at least as long as it takes the other indices to catch up. Is
> this a
> >>correct interpretation?
> >>
> >>Frank, my memory is that you're the one who posted the recent note
> about a
> >>Stoch that doesn't drop being trend indicating (or something like
> that, I
> >>can't find the note). (c.f., latest issue of TASC on the
> "Pop-Stochastic").
> >>
> >>Sometimes a Stoch drops below the 80 signal line and this is an
> extremely
> >>important thing to pay attention to because the drop to below or
> close to
> 20
> >>will turn out to have significant price implications. But sometimes
> the
> >>drop below 80 is very short-term and the return to a reading above
> 80
> >>signals continuation of the trend. (The article in TASC points out
> that
> the
> >>return to a reading above 80 is itself a signal of the continuing
> trend,
> as
> >>Frank's(?) note also pointed out.)
> >>
> >>My question is this: Are there one or more indicator(s) one can use
> in
> >>conjuction with the stoch that provides some significantly reliable
> insight
> >>into whether a below-80 faltering stoch signals the beginning of a
> >>significant correction or merely a breather before the stoch moves
> to
> above
> >>80 again?
> >>
> >>In the VERY FEW cases I've looked at, it seems like a default parm
> MACD
> >>provided some early insight into what might be the actual future of
> the
> >>stoch in the kind of case I've laid out above.
> >>
> >>Thoughts?
> >>
> >>Steven Buss
> >>Walnut Creek, CA
> >>sbuss@xxxxxxxxxxx
> >>
> > :::::::::::::::::::::::::::::::
> >
> >Steven -
> >
> > MIRAT does not use Stochastic in its algorithms. Another Tools for
> Timing
> >program, the user interpreted TIMER PROFESSIONAL, does make available
>
> >Stochastic of Price and its version of an Advance/Decline Line. I've
>
> >uploaded to my web site a page showing this. The URL is:
> >http://www.usinternet.com/users/fbg/tpstoc.htm. I like what I see in
> that
> >graph, the two Stochastics rising rapidly, with Price leading both.
> If
> >Price were lagging behind, I would not think as I do, that the Market
> will
> >be going up for at least the next few days. I don't have a crystal
> ball,
> >but I do see Price leading the two Stochastics, which will have to do
> in
> >its place!
> >
> > A couple of notes on Stochastics in this context; MIRAT uses Signal
> Lines
> >of 25 and 75 and you are using 20 and 80. I only point it out for
> when
> >comparing graphs. Also, on my web site page I am showing the DJIA
> and not
> >the S&P 500, so the Stochastics of Price is that of the S&P 500.
> >Stochastics of the Advance/Decline Line is of the NYSE, the same with
> DJIA
> >and the S&P 500.
> >
> > You ask about confirmations of Stochastics. One I use, already
> mentioned
> >above, is Price. Remembering that Stochastics are Moving averages of
> the
> >relationship of Price to the Range of Prices over a given period of
> time, I
> >look at Stochastics as a representation of how well Price is doing
> against
> >that Range of Prices. If Price and Stochastics keep going up, I see
> >Stochastics confirming Price. In up movement, it will be Stochastics
>
> >confirming Price, as Stochastics, by its Moving Average nature, must
> lag
> >behind Price, more volatile that Stochastics. Stochastics can lead
> price
> >if Closes are consistently higher from one day to the next and those
> new
> >highs (for that immediate time period, but not necessarily 52-Week or
> other
> >longer than a few days time period) are small. In other words, if
> Price is
> >moving up slowly and each day brings a new high, then Stochastics can
> lead
> >Price in its rise.
> >
> > If Stochastics snake along between the Top Signal Line (75, 80,
> whatever)
> >and the top of the graph, then I see that as simple confirmation that
> the
> >upward Price move is strong and will probably continue for the next
> little
> >while.
> >
> > Williams %R and RSI (Relative Strength Index) are two Indicators I
> have
> >used in corroboration with Stochastics. I've also used Stochastics
> with
> >longer parameters, say 21 days and higher and lower Signal Lines (85
> or 90
> >and 10 or 15) as more of a confirmation of a trend. I should add that
> I
> >only use Signal Lines for points of reference, not saying that
> something
> >has to be done when one is crossed, concentrating more on the
> direction,
> >rate of change and consistency of Stochastics.
> >
> > I believe that everyone should have a few Indicators or other tools
> with
> >which they become comfortable in using, Indicators that they come to
> trust,
> >and Stochastics is the one for me! For the record, the others are
> Moving
> >Averages and Linear Regression (Line of Least Squares). As I see
> more and
> >more of Jim's Channel stuff, I am feeling more comfortable with
> Channels.
> >
> >-- Frank :-)
> >
> >High Return on Investment using Technical Analysis
> >http://www.usinternet.com/users/fbg/
> >Minnesota Long Distance Canoe Racing
> >http://www.usinternet.com/users/fbg/mnlong/
>
> ------------------------------------------------------------------------
>
> >
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