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Steve;
Thanks, ...I think.
M.R.
-----Original Message-----
From: Steve Karnish <kernish@xxxxxxxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Date: Sunday, April 11, 1999 4:53 PM
Subject: Re: SMI and TSI
>"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?"
>
>Michael,
>
>I was publicly educated in the Detroit school system and English isn't
>something I have a handle on. I completed my undergraduate degree 30 years
>after high school graduation and almost didn't accomplish the feat because
>of 200 and 300 level statistics' classes. I have included a reference to
>the articles that the formulae were taken from. Applying the formulae to a
>couple of thousand charts, should satisfy your curiosity. My "opinion"
>about "what the functions are going to do" is totally worthless. They are
>in constant motion (the math is a mystery to me).
>
>I wish I had some specific, spiffy reply that would answer your question.
>Ten people could read the articles and come away with ten different ideas
>on how to use these indicators. I guess my best "guess", at what they do,
>is to say that they identify momentum in the markets and tend to signal
>market turns. I don't really believe you have to understand the math
>behind the indicator (many would disagree). I start my car and turn on the
>lights and don't really have a clue about the principles behind gas engines
>and electricity.
>
>I'm not being cute, I'm just not very bright. I offer the formulae in good
>faith, hoping that smarter folks might improve, modify, and alert me to
>modifications that work for them.
>
>The indicator guru, William Blau, says of the SMI: "Double smoothing of
>both numerator and denominator of the original formula of %K of the
>stochastic indicator aids in obtaining low-lag smoooth-contoured indicator
>curves. In lieu of single parameter to specify the stochastic, the
>Ds-stochastic formulation provides an additional two parameters for a
>double-Ema effect."
>
>and
>
>"The true strength index may be considered to be a cross between a relative
>strength indicator and a moving average convergence/divergence indicator
>with many desirable properties from each."
>
>It's all Greek to me...they either work or I try to tweak them to make them
>work. If I don't see the value, I toss them out. At one time, I used SMI,
>TSI, & LRS separately, now I combine them. "Spin 'em" on a couple thousand
>charts, combine them with other indicators, substitute your own numbers in
>the formulae.
>
>Hope this helps,
>
>Steve Karnish
>CCT
>
>
>
>----------
>> From: Michael Robb <mrobb@xxxxxxxxxxxxxx>
>> To: metastock@xxxxxxxxxxxxx
>> Subject: Re: SMI and TSI
>> Date: Sunday, April 11, 1999 12:07 PM
>>
>> 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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