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Today I discovered something unusual about the PFE indicator, and it is
contrary to the information I sent to some list members. I said that the
time frame did not matter in regard to the waveshape. This may not be
true.
I have not had time to investigate this further, but at this point it
appears that as the time frame increases, the indicator shape changes. I
have not seen this before in any other indicator so it is puzzling to me.
For example, the RSI indicator will have similar characteristics whether
it is applied to a 5 minute bar or a daily chart.
With the PFE indicator the characteristic sawtooth wave form can readily
be seen when applied to 3 or 5 minute bars. As the time frame increases,
however, this sawtooth pattern is noticeably lost. By the time you reach
daily data, very seldom do you see the sawtooth.
I make this comment based on only a few charts, and will continue to
research this. Please make any comments to help understand this.
Due to requests from several realtraders, I have attached the ELA file of
the PFE indicator that I modified to be able to change the lookback period
(default = 9). Note: the observations above were made with the "standard"
PFE indicator.
Neal
Attachment Converted: "c:\eudora\attach\Pfev.ela"
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