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Dear Sirs and All:
I think this is a great time to ask the following questions on the above
subject.
This has been a burning question that has been bothering me for some time.
As pointed out, there are some subtle variations in the exact formula for
cal-
culating the projected high and low for any given trading day. To wit:
In "Trading The Ross Hook", Joe lists three (3) different formulas for
figuring tomorrow's typical price in congestion, in an uptrend, and in
a downtrend.
Tom DeMark has his own formula, different from the above, for what
he terms "daily range projections".
John Stenburg, I believe, also has his own formula for predicting the
next day's high or low.
In one of his older books, Larry Williams gives a formula for the same
concept.
Finally, George Angell's LSS system described in his book "Winning
in the Futures Market" takes the reader through several calculative
loops vis a via the next trading day's high or low.
Has anyone done any backtesting to determine what is the single best
formula in this exercise? Perhaps the resulting differences are not
relevent
to trading results? but common sense tells me that there is probably a
good
reason one of the above formula is more important than its peers.
Can one of you gentlemen enlighten us on this subject? If anyone has done
any testing, I'd certainly like to know the results they are willing to
share.
Alternatively, I'd be happy to forward all of the above formula for the
purpose
of sharing and brainstorming.
Thank you for any insights you can provide.
Sincerely,
Charles Meyer.
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