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Robert W Cummings wrote:
>
> Is there an indicator that adjust to a declining are rising market to
> reflect a
> fixed level for an over sold and over bought situation late in the trend.
> Feel like theres not I have tried everything but thought I would ask just
> in case. Have use a lower low and lower high zones and a crossover but not
> to reliable because its not a constant. I have good success with percentR
> and slowd showing tops and bottoms in counter is that the best anyone can
> expect. [......]
You might look at C. Kase's work, e.g., Trading with the Odds book.
She presents indicators which claim to be able to identify "real" OB and
OS conditions that make the prices ripe for a reversal. Based on
constant values in the sense that the levels are based on past trends in
many commodities.
A "dynamic" oscillator was presented some time back in Futures or S+C.
I think it plots the difference between an osc. and its average. That
way steady trends aren't overbought but a runaway situation is
considered overbought. Look for "dynamo" on the omega co. site; it
might be on there (or email me, I think I have it in TS).
You could also qualify your oscillators by how close to
support/resistance you are. In other words, an overbought condition on
whatever osc. you're using is more significant if prices are approaching
resistance. I've developed a quantitative approach similar to this for
myself to provide an objective set of rules, but I've not yet been able
to get the indicators/rules into a system to properly test to see if
it's profitable!
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