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I've recently re-discovered the quality of the User manual. The
interpretations of various indicators offer useful advise.
Take the Stochastic. I'm looking to use Overbought/Oversold indicators.
The manual recommends that these work best in non-trending markets and that
'r-squared', CMO and VHF might be used to determine this.
I tried r-squared (RSquared(C, 14) <0.27) which improved the system results
significantly. But it does seem to traverse extremes very readily and give
false signals.
Are there some favorites out there for indicating congestion or trendiness
and their strength ?
Thanks,
Sean
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