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I guess that's the key and has always been my frustration. To those
with better math skills than mine, are there any common mathematical
approaches or tools that might be an avenue to pursue in determining
just how out-of-phase an indicator cycle has become to a price cycle
so as to adjust entry or maybe even indicators accordingly?
dbs
Mark Jurik wrote:
> Monte:
>
> >>... In summary, I think a 2-line ma crossover system whose best return on account comes from inverted ma lengths, does so because the ma crossover system lag is the duration of the cycle.<<
>
> You are very close... actually the crossover lags by 1/2 the cycle length, so inverting the MACD logic puts it right back in phase with the oscillating signal. However, this approach is risky because during an uptrend, the reverse logic will suggest going short. Consequently, this approach works best on markets that spend most of the time reversing within a channel.
>
> - mark jurik
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