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>I have one of these but it fails to adjust for radical price
>movement (if anyone wants it I'll send it along).. so it works fine
>for futures but if say MSFT was at $6 the oscillator will return an
>entirely different range of values than it will when MSFT = $50 so
>I can't backtest over a 3-8 year period for stocks that had a wide
>price move. Has anyone tried to solve this flaw or seen a solution
>posted somewhere?
A solution might be to run the oscillator on LogValue(price) rather
than just the price. This converts price to something proportional
to percentage gains and drops rather than dollar gains and drops.
The price fluctuations of a stock around $6 will then be the same
(in percentage terms) as the price fluctuations of the same stock
around $50.
--
,|___ Alex Matulich -- alex@xxxxxxxxxxxxxx
// +__> Director of Research and Development
// \
// __) Unicorn Research Corporation -- http://unicorn.us.com
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