|
PureBytes Links
Trading Reference Links
|
Tom Cathey
> > Ron Augustine wrote:
> > Ideally, your basic assumption that it is necessary to know when to
> switch
> > between a trending and a oscillating analysis platform would appear to be
> > correct--
Tom Cathey Writes about System and methods, and after a few major
snips:
> MY QUESTION TO EVERYONE: Other than the over-used indicators that are
> supposed to tell us what "type" of market we are PRESENTLY in, what methods
> can you think of that will forecast what "type" of market to expect NEXT?
>
> Over-Simplified Examples:
>
> Maybe after sharp climax we should look for a chop.....etc? - How to
> measure this ?
>
> After a long, drawn out chop, maybe next a trend? - How to measure?
>
An Idea occured to me, while reading your post. ( that I haven't
thought about enough to figure out all the problems with it,)
Maybe it would make the problem simpler if we considered the market
to be of only one type. and this one type of market has at least 2
parameters. On the surface it seems to simplify down to two
parameters.
The one type of market would be a trading range market.
The parameters would be time, something along the lines of cycle
length, and range amplitude.
What we call a trending market would be
a trading range market with Longer time parameter between cycles or
half cycle, and a larger amplitutde or range parameter than what we
call a chop market. a sideways market would have a narrow range and
a time of however long it lasts.
maybe a third parameter for volatility.. I suppose a ratio of the
first two parameters.
This make any sense?
--- Kirk
|