|
PureBytes Links
Trading Reference Links
|
I really dislike the use of the term stochastics for this indicator. It has
nothing to do with stochastics. Stochastics relates to a statistical
process.
During the Apollo program at NASA my team performed stochastic studies to
determine the variance of everything from orbital parameters to consumables.
It was a key ingredient to the success of the manned exploration of the
Moon.
Years later as I began to study technical analysis of securities I was
excited to learn that there was a statistical type of indicator called
stochastics. As I examined the formula I concluded it was bogus and didn't
have anything to do with stochastics. My other big gripe is the momentum
indicator. It has nothing to do with the physical property of mass times
velocity.
Now that I have vented my disgust, I'm relieved to learn that Lane named his
indicator after a book title. Good move George. It is good that he isn't
taking this stuff seriously.
But what turkey confused price rate of change with momentum?
Now don't get me started on the simple moving average.
Marlowe
----- Original Message -----
From: Jerry Gress <thegress@xxxxxxxxxxxxx>
To: Omega List <omega-list@xxxxxxxxxx>
Sent: Sunday, September 12, 1999 8:24 PM
Subject: Re: Stochastics
> And the word stochastic, George Lane chose after a book titled "The
> Stochastic Man" (he could see the future) printed in ??
>
>
> Jerry Gress
> Stockton, Calif. USA
> trader@xxxxxxxxxxxxx
>
|