PLDot Uses...

["Glenn Woolum" <gwooly@xxxxxxxxxxxxx>]

> > The PLdot is nothing more than a very tight moving average. The value is
in
> > the rules to interpret the moving average. The basic theory is that the
> > moving average and the price will oscillate around each other and from
that
> > fact you can develop trading strategies. Watch the MA oscillate around
the
> > price for a while and develop your own strategy strategy. You do not
need to
> > pay 3K+ to have someone tell you very simple rules for this indicator.

Greetings MS List...
I played around with the PLDot formula to see if there are any uses for it.
I eventually came up with an up/down trend diviner. It gives clear signals
in trend by taking the average difference of closes from PLDot. The result
of that was still hovering too close to the center line, so I add the close
if the PLDot is above zero and subtract the close if it is below zero. I
multiply the result by the ADX. The resulting indicator is very sensitive to
changes in trend, and gives clear unambiguous signals. If the indicator is
above zero the trend is up, if it is below zero the trend is down. I'm sure
it needs more work before you could trade off of it, but it creates an
interesting study that could become part of a larger system. Here's the
formula I came up with:

var1:= (C - (Sum(Typical(),3)/3)); {set the var with the PLDot}

0; {plot zero line}

If(Mov(var1,9,S)>0, Mov(var1,9,S) + C,
If(Mov(var1,9,S)<0,Mov(var1,9,S) - C,0))
* ADX(var2)  {plot the indicator}

Regards,
Glenn Woolum