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I can't resist suggesting you read a better magazine. Buzz me for a suggestion.
John
>Recently I started to read an article by Tom and T.J. DeMark in the March
>"Futures Magazine" p. 40 entitled "Fools Rush In". Prepared once again to
>give TD the benefit of the doubt, I read the following at the beginning of
>the article:
>
>"Most traders depend on the RSI and stochastics ... but reliance on these
>techniques is unfounded (because) the RSI (and stochastics) are calculated
>by using
>exponential moving averages" [NEWS TO ME -- is he talking about the
>TD-RSI?],
>
>and ... "Oftentimes extraneous events, such as electrical failures,
>weather, unexpected developments, etc., will ... impact the RSI values.
>Because arithmetically calculated oscillators cover a specified time
>period, they don't have this limitation."
>
>There are at least two responses to this techni-goop -- LAUGH or CRY.
>How this stuff gets past the editor in this publication I don't know. I
>did not continue reading the article. If anyone has read it and has
>something worthwhile to report, please motivate me to go back to it. I am
>still very eager to find an "arithmetically calculated oscillator" that
>would not be affected by electrical failures, weather, and (to take it all
>the way), Acts of God.
>
>This should be a warning to all List members that what is written in
>popular publications is not necessarily accurate, insightful, or even
>logical.
>
>Neal
John Sweeney, Tech. Editor Technical Analysis of Stocks & Commodities
Technical Analysis, Inc. The Traders' Magazine
4757 California Ave. S.W. Phone: 206 938-0570 Fax: 206 938-1307
Seattle, WA 98116-4499 USA Web: http://www.traders.com/
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Contents may not reflect official opinion of Technical Analysis, Inc.
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