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This is another case of using indicators blindly and back testing to make them
fit. An understanding of what these indicators where meant to do and how they
were intended to work would solve this problem. Both the moving average and MACD
are trend following systems and are lagging indicators. They tell what the
condition was x numbers of bars back. Not what is happening now. The assumption
is that if the trend changed x number of bars back then we are still in that
trend. The problem is, which trend are you in? Each time frame has a different
trend. First you have to decide which time frame you want to trade. Second you
have to decide which cycle in that time frame you are trading, and only then can
you adjust the indicators to reflect the correct information. The first clue is
that you only use odd numbers for moving averages and things dependent upon
averages. Ira
MRLYNNG@xxxxxxx wrote:
> The markets are always changing. As they change, systems go thru periods of
> profitability and drawdowns. Is there a way to build in an automatic testing
> and updating of the proper length for a MA, MACD or Oscillator? Similar to
> an internal optimizing that adjusts every X number of bars.
>
> Can this be coded or does anyone know of a TS 4.0 add-on that can do this?
> Lynn
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