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Did you do some studies reg. Multiple-time-frame indicators? Are there some examples
in EL available, and how you would interpret the results? Are there techniques for
optimization the time-frame of the underlying markets ?
BR
Frank
dcountach wrote:
> >Subject: Momentum - Leading or lagging
> > Date: Sat, 17 Oct 1998 22:21:40 EDT
> > From: CRLeBeau@xxxxxxx
> > To: trade_jack@xxxxxxxxx, mgj@xxxxxxxxxxxx, Omega-list@xxxxxxxxxx
> >
> >In a message dated 10/15/98 9:26:54 AM, trade_jack@xxxxxxxxx writes:
> >
> ><<but why do many authors, including Kaufman, Blau, even Chuck LeBeau
> >(in his book), claim that momentum (and indirectly acceleration) are
> >"leading" indicators? bob fulks also argued that under some
> >conditions, momentum can be a "leading" indicator, as well as a
> >"lagging" indicator. and isn't your "vel" thingy a "coincident
> >indicator."
> >
> >what am i missing here? is it just a question of semantics and all
> >indicators are lagging, or some lag less than others?
> >>>
> >
> >I think the reason that momentum is sometimes considered to be a leading
> >indicator is that it often changes direction in advance of price while other
> >oscillators merely follow the direction of price. This characteristic of
> >momentum makes it a lead indicator in its application. I would certainly
> >agree with anyone who wanted to argue that mathematically it is not a lead
> >indicator but if it serves this purpose (and many claim that it does) who
> >cares.
> >
> >There obviously are no true lead indicators. Wish there were.
> >
> >Chuck
> >http://traderclub.com/
>
> The reason momentum may seem to lead price is because it is a
> length-based indicator. If a significant event (i.e, price movement)
> occurred "length" bars back, when it suddenly is no longer in the series
> then there is a great change in the indicator even though the current
> price DID NOT change.
>
> For example, a stock has a steep decline. There is a strong rally (say
> 30% retracement), followed by a long slow decline. During the slow
> decline the price will be greater than the end of the steep decline.
> The momentum will be positive. But the stock is likely still going
> down. If the stock DOES recover, then the momentum appeared to lead
> the price increase. But if the length used was longer or shorter, then
> them momentum would have been negative. Or positive sooner, such as at
> the peak of the rally. BUY! BUY!
>
> Momentum is a simple indicator, a subtraction. Therefore the earliest
> price in the series has as much effect as the last. Not too swift.
> Most length-based indicators have this problem. Multiple-time-frame
> indicators may help overcome this problem.
>
> donc
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