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On Sun, 14 Dec 1997 10:59:12 Bob Fulks wrote:
snip<<
I just received the January issue of Technical Analysis of Stocks &
Commodities and noticed the article "Smoothing Techniques for More Accurate
Signals", by Tim Tillson.
>>snip
Bob;
Thank you for the work that you did on coding the T3 Averages from S&C. I
offer the following comments with regard to the efficiency of this
particular indicator.
Some time ago I did quite a bit of work with moving averages (haven't we all
at one time or another). In my application (S&P 1 minute) I found that the
application of (High,10), (Low,8) and (Close,3) simple averages was the most
effective in helping to determine short term market conditions, looking at
the CloseAverage in relation to the other two averages.
I dredged up my old indicator and compared it to the T3 averages on an S&P 1
minute chart. I found that the T3 averages from S&C track the simple
averages within a few percentage points with no noticable improvement in
response time. Actually, I found that the T3 averages have a slightly
poorer response time than the simple averages. Given the relatively large
code for the T3 indicators I wonder where the benefit is.
I have not investigated other markets or other data compressions other than
taking a tertiary look-see. I have only tested the T3 indicator in my
particular application and offer these comments as a general discussion.
Regards
Rod Wheeler
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