What's on the list of Independent Indicators

[Steven Buss <sbuss@xxxxxxxxxxx>]

>From the posts of Alex and Mark and myself, I've put together the beginnings
of an "Indicator Taxonomy".  It appears below in its current form.  I
estimate that it is 2%-5% complete.

-  Moving Average Indicators
   -  SMA
   -  VIDYA
   -  TEMA
   -  DEMA
   -  EMA
   -  you get the picture....

-  Volatility Indicators
   -  ATR
   -  Historical Volatility (per Mark used by options traders)

-  Trend Strength Indicators
   -  ADX (Wilder)
   -  Ravi (Chande)
   -  CFB (Jurik)

-  Pivot Bar Count Indicators
   -  Aroon (Chande)

-  Oscillator Indicators
   -  MACD
   -  Stochastic
   -  %R
   -  DMI
   -  Cycle Analysis (of some kind noted by Alex)
   -  and many more...

One thing I'm unclear about has to do with what constitutes a truly
'independent indicator'.  For example, there are many indicators in the
Oscillator Indicator category which may be derived in truly different ways
and yet when plotted can be manipulated to look a lot alike if not exactly
the same.  So, what should be considered as the critieria for
"independence":  a unique mathematical derivation technique or a unique
looking plot for the indicator time series?



-----Original Message-----
From: Alex Matulich [mailto:alex@xxxxxxxxxxxxxx]
Sent: Saturday, May 11, 2002 8:35 AM
To: omega-list@xxxxxxxxxx
Subject: Re: What's on the list of Independent Indicators


Steven Buss wrote:

>It would be interesting to discuss what a list of truly independent
>indicators would contain.

I agree.

>The list starts with the ones that Alex notes below:
>
>-  ATR
>-  moving average

Actually ATR would be in a classs of range indicators, including TR,
ATR, standard deviation of TR, and possibly multi-bar range indicators
like Williams %R.

>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 would add cycle analysis.

-Alex