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It would be interesting to discuss what a list of truly independent
indicators would contain.
The list starts with the ones that Alex notes below:
- ATR
- moving average
Additional ones include:
- bars since highest high | lowest low (Chande's Aroon)
- trend strength (e.g., Wilder ADX, Chande's Ravi, Jurik's CFB?)
I'll see about adding others to the "Independent Indicators List" later.
But for now, what others are there?
sb
-----Original Message-----
From: Alex Matulich [mailto:alex@xxxxxxxxxxxxxx]
Sent: Thursday, May 09, 2002 8:13 PM
To: omega-list@xxxxxxxxxx
Subject: Re: Orthogonal / independent indicators
>A while ago someone on this list (I believe) mentioned in passing that
>there are only about 13 or so indicators for price series which are truly
>independent of each other.
>
>(As in, for example: ATR and moving averages are independent because they
>look at different aspects of a price series. ATR and ADX are not
>independent because ADX uses ATR as part of its computation.)
Actually ATR and ADX are independent because, if you work through the
math, you'll find that all the ATR terms cancel out. It may as well not
even be there.
--
,|___ Alex Matulich -- alex@xxxxxxxxxxxxxx
// +__> Director of Research and Development
// \
// __) Unicorn Research Corporation -- http://unicorn.us.com
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