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In a message dated 98-03-12 09:17:45 EST, 75231.2457@xxxxxxxxxxxxxx writes:
<< Have tried this, at least I think I understand your reply and have
used the EMA of ROC. >>
Hi Randy,
The EMA of ROC and the ROC of EMA are not exactly the same but some
people do use it. As I understand it EMA of ROC is much more choppy than ROC
of EMA.
In the formula ROC = ((C/C[N])-1)*100 you would substitute the
EMA of the close for C and EMA n bars ago for C[N]. As you can see, you have
to decide on both the period of the EMA (say 30 bars) and the value of N (your
7, 10, 20 bars).
In Elder's book he recomends the Smoothed ROC and showes some nice
charts (but we all know charts in books don't trade), but as far as I know, no
one has tried combineing three time frames as you have with your three ROC's.
I was hoping this might help with the problem of short trades, since it
supposedly gives fewer but more reliable signals, but it may be just adding
complexity.
Unfortunatly I do not have Trade Station so I can't help test this
idea or I would and pass it to all.
Good luck and good trading,
Ray Raffurty
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