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In a message dated 7/13/99 3:59:04 PM Pacific Daylight Time,
jstratmann@xxxxxxxxxxxxx writes:
<< I'm new to TA and TS2000i. So far I'm having a lot of fun studying
everything and trying to apply what I've learned. But... I'd like to know
how most people pick the numbers to use in the Indicators.
For instance, if I'm watching Yahoo and I want to use Momentum and MACD -
how do I pick what numbers would be proper? Sure, I could run optimize on a
study based on these functions but isn't that fitting the curve and
therefore produces "bad" results?
>>
Indicator settings should depend on what you are trying to learn from them.
The MACD is a pretty well established indicator where the default values have
been set up for stock trading by the originator. I wouldn't change them
without a specific purpose in mind.
Momentum does not seem to be as standardized as MACD and the settings should
relate to the time frame you want to learn about. If you want short term
info, make it shorter. If you want longer term info, make it longer.
You can optimize indicators when they are part of a system but I see no point
in optimizing an indicator by itself unless you are trying to make a system
out of an indicator (not a good idea). Indicators are analytical tools, not
systems. There are no good or bad indicators only good or bad uses of them.
Hope this helps.
Chuck LeBeau
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