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Steve:
Would you be willing to express SMI and TSI forumulae in English, for
me...so I can get a better grasp of what the functions are going to do?
Thank you.
M.R.
-----Original Message-----
From: Steve Karnish <kernish@xxxxxxxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Date: Sunday, April 11, 1999 1:49 PM
Subject: Re: CMO & Cocoa
>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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