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"Woodies room." There are times when radiation from Yahooligan sheepland
reaches this list. And here we go again. All this talk about
"Woodies room." There are two types of people: people who are sheep,
and people who THINK.
Tuesday, December 2, 2003, 10:52:52 AM, you wrote:
BS> Hi Alex,
BS> As the note in the indicator says, it is only plotting the average. William
BS> Blau also uses the faster line (which is not plotted) for crossover
BS> indications.
BS> The fellow in Woodies room (which emphasizes the CCI) uses this ergodic as
BS> an indication of trend, as you point out.
BS> I agree that there are many ways to skin the cat to determine trend, and
BS> this was one way that moderator chose to confirm a trend.
BS> Regards,
BS> Barry
BS> ----- Original Message -----
BS> From: "Alex Matulich" <alex@xxxxxxxxxxxxxx>
BS> To: "Barry Silberman" <Barry@xxxxxxxxxxxxxxxxx>
BS> Cc: <omega-list@xxxxxxxxxx>
BS> Sent: Tuesday, December 02, 2003 1:09 PM
BS> Subject: Re: ergodic indicator - text version
>> Thanks Barry, for posting the text version.
>>
>> After looking at the code, it seems to be one of those things that,
>> like any other indicator, sometimes works and sometimes doesn't.
>>
>> This is nothing more than a moving average crossover, using daily
>> price change rather than price as the input, smoothing it with a
>> steep-rolloff (and high lag) lowpass filter (EMA of an EMA of an
>> EMA), then smoothing that result (value1) with a normal EMA (to get
>> value2) and indicating when value1 is higher or lower than value2.
>>
>> All it seems to tell you is that closes have been higher in the
>> past, or lower in the past. As such, it's good for determining if
>> the market has been trending up or down.
>>
>> What it has to do with ergodic dynamical systems or ergodic theory
>> escapes me.
>>
>> Replacing the TXAverage with a T3 Average might improve it somewhat.
>>
>> -Alex
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