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Lionel,
Stochastic Momentum Indicator:
{Appeared in the January 93 issue of Stocks & Commodities magazine}
100 * ( Mov( Mov(C - (.5 * ( HHV(H,13) + LLV(L,13))),25,E),2,E) / (.5*Mov(
Mov( HHV(H,13) - LLV(L,13),25,E),2,E)))
True Strength Index:
{Appeared in the January 93 issue of Stocks & Commodities magazine}
100 * ( Mov( Mov( ROC(C,1,$),25,E),13,E) / Mov( Mov( Abs(
ROC(C,1,$)),25,E),13,E))
I combine the above with the linear regression formula (off the MetaStock
shelf). I substitute various fibonacci numbers in the formula and weight
each of the three parts. I believe that every investor should decide which
variables suit their markets and trading temperament. Emphasizing one of
the formulas might cause the Kaleidoscope to be more sensitive to turns,
yet it might also make the indicator choppier. I strive for smooth, but
sensitive (a real 90's kind of guy).
Steve Karnish
CCT
----------
> From: Lionel and Gail Issen <lissen@xxxxxxxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: CMO & Cocoa
> Date: Sunday, April 11, 1999 5:30 AM
>
> What do y ou mean by "SMI" and "TSI".
>
> Lionel
>
> -----Original Message-----
> From: rudolf stricker <rst@xxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
> Date: Sunday, April 11, 1999 7:00 AM
> Subject: Re: CMO & Cocoa
>
>
> >
> >Steve,
> >
> >On Sat, 10 Apr 1999 08:34:32 -0700, you wrote:
> >
> >> I use a combination of LinReg, SMI, & TSI
> >>(Kaleidoscope) for the most of my studies.
> >
> >Do you use those indicators in a special unique combination, or do you
> >calculate them separately and combine them e.g. by a kind of "binary
> >waves" ?
> >
> >>As for the CMO and cocoa: one
> >>look at the "perfectly" structured downtrend and one can discern that
the
> >>parameters (variable periods and trigger levels) would not produce the
> same
> >>results if cocoa starts to trade above it's current channel.
> >[...]
> >>All one really has to do to take advantage of the cocoa downtrend (or
any
> >>trend), is to sell against the 13 day moving average put a stop in at
the
> >>34 day moving average. It would have resulted in a successful trade
the
> >>last 20+ times in cocoa.
> >
> >This might work for cocoa (but not for e.g. my DAX trading). BTW: Do
> >you have any special "insider" know-how about cocoa to get an idea,
> >when special trends or patterns will be active? Imo, this would be
> >necessary to use successfully any "special trend" model.
> >
> >> I don't buy into the
> >>suggestions that one must be able to back test a system for 5 years
with
> >>various samplings to validate an approach.
> >[...]
> >>The markets are dynamic. To think that a universally applied approach
> >>(mechanical) would consistently work on a commodity or many commodities
> is
> >>not a very good premise to trade by.
> >
> >This is ok for me, especially, if you have special know-how about the
> >market under consideration to understand & identify the reasons for
> >special trends to be active.
> >
> >But because I don't have any special knowledge about the market
> >mechanisms for any special products, I concentrate on the most general
> >"product" , i.e. the DAX, and I try to anticipate its option prices
> >based on historical data of the DAX, its sentiments, and some
> >macro-economical aspects. And because I have a background in
> >"identification & re-use of know-how, based on example", I'm quite
> >successful up to now.
> >
> >>Nothing last forever, but in the meantime, until cocoa demonstrates
that
> it
> >>wants to trade out of it's channel, I will continue to take the signals
> >>that this little secular system provides.
> >
> >Do you know about any other products around, that have strong trends
> >on a regular basis like cocoa and about the reasons for this behavior?
> >
> >Happy & successful trades!
> >mfg rudolf stricker
> >| Disclaimer: The views of this user are strictly his own.
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