|
PureBytes Links
Trading Reference Links
|
There seems to be a widespread confusion between causation and
correlation.
If a stock price is in an uptrend and the Inverse Fisher Transform of
RSI is greater than 50 (indicating a "buy" signal, depending on
parameter), that's only a correlation between the IFT of RSI and stock
price. The stock isn't rising because of the indicator, the indicator
is rising because of the stock price and it's the same story with
virtually every TA indicator.
So what is the purpose of back-testing this OR ANY indicator if it's
not the cause of stock price movement? The only things that are being
generated are meaningless correlations.
Luck to all,
Sebastian
------------------------ Yahoo! Groups Sponsor --------------------~-->
Put more honey in your pocket. (money matters made easy).
http://us.click.yahoo.com/r7D80C/dlQLAA/cosFAA/BefplB/TM
--------------------------------------------------------------------~->
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/equismetastock/
<*> To unsubscribe from this group, send an email to:
equismetastock-unsubscribe@xxxxxxxxxxxxxxx
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
|