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At 10:02 AM 4/13/99 -0600, you wrote:
>Good morning Peter,
>
>I use Metastock. But thanks for trying. I'm looking for 3 unrelated
>indicators and a moving average will be one. I'm just trying to define it
>first and move on to an oscillator. I will also look at ADX and Average
>True Range. Who know where I'll go from there!
>
>Linda
>
Linda,
I will warn you that those indicators are not unrelated because they are
all price based. Only by using another data source will you have a truly
independent indicator. Be careful with oscillators if you're trading short
term: divergences etc. can be tricky under pressure.
It sounds like you're using Welles Wilder's work. He originally describes
these principles in New Concepts in Technical Trading Systems. It would be
well worth your while to check out this text, written in 1978 and calculate
them by hand so your understand their weaknesses, espcially since the
markets move differently than in the inflation driven '70s. The book also
describes DMI, Parabolic, RSI etc.
Many people use MACD and ADX or RSI as they are calcuated differently (and
designed by different people.) Again, these are all based on momentum or
strength of trend, which presents its own problems.
Cynthia Kase has tried to integrate and refine those indicators with a
statistical bent (standard deviation etc.) I feel that the fees for her RT
version are exorbitant (E.O.D. is okay) and I don't know if they're
available for Metastock.
PG
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