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Hi Mark!
A lot would depend on how you used the indicators.
You probably know this, but it's worth mentioning for
other readers who may not have read Joe's book.
The DiNapoli MACD and Stochastic are not used to generate
entry and exit signals. Instead they are used to quantify
trend..
Also, the MACD/Stoch/3X3 indicators of the NEXT HIGHER
time-frame are used. So if you are trading a 60-minute
chart, you use the indicators of the Daily chart. Or if
you trade the daily chart you use the Weekly indicators.
So they are used to define the "context" of your trade.
The actual entry, stop-loss, and exit signals are defined
by DLevels, the advanced Fibonacci techniques and the
9 predictive patterns in his book.
In practice you could use any of your own preferred
trend indicators instead of DiNapoli's MACD/Stochastic/3X3,
as long as you've proven them to be accurate trend indicators
in actual trading. I just prefer to use Joe's settings because
they work!
-Neal.
At 12:09 AM 5/27/00 -0400, you wrote:
>I constructed DiNapoli's versions of these indicators last year and did not
>see any significant advantage over simpler implementations of these
>indicators. I believe there is a slight advantage to trading with indicators
>set to be a shade faster than the "standard" signals, but I saw very little
>difference between the DiNapoli and standard versions.
>
>Mark Berg
>
>
>
>----------
>>From: "Dennis L. Conn" <dennisconn@xxxxxxxxxxxxxxxx>
>>To: <realtraders@xxxxxxxxxxxxxxx>
>>Subject: [RT] GEN: DiNapoli indicators
>>Date: Fri, May 26, 2000, 4:58 PM
>>
>
>> Hi RT's,
>>
>> I'm looking for some enlightenment on a couple of things in Joe DiNapoli's
>> book, "Trading with DiNapoli Levels". Since I didn't buy it from his
website
>> or an authorized reseller, I don't have the opportunity to get the answers
>> from his restricted site without buying something else from him first - I'd
>> like to know if there's enough of value in what I've already purchased
>> before I start spending more. It sounds impressive, but then, I'm somewhat
>> ignorant about indicators. Besides, I'm cheap, er, I mean frugal...
>>
>> He mentions modifying the MACD by using Bernstein's DEMA inputs of 0.213,
>> 0.108 and 0.199. He also mentions that these exponential inputs can be
>> simulated by "period" inputs of 8.3897, 17.5185 and 9.0503. My question is
>> (to put it bluntly), what the hell is he talking about?? How can you input
>> fractional values as MA periods? Apparently, I lack the understanding of
the
>> concept behind the DEMA to grasp what he's talking about.
>>
>> Likewise with his modification of the stochastic - he writes about using a
>> modified MA and values of 8, 3 and 3 instead of the standard values, but
>> once again, I'm stumped as to what this modified MA value is to be. Again,
>> it may be that I lack certain fundamental information to understand it.
>>
>> If you've read his book and grasp these ideas, and/or apply them in your
own
>> trading, I'd appreciate any plain English explanation you can offer.
Perhaps
>> I'm overlooking the obvious here, but I'm probably trying to run before I
>> can walk - I only recently started to study indicators, so my knowledge
base
>> is definitely lacking. I'll welcome any help anyone can offer!
>>
>> Ignorantly,
>>
>> Dennis C.
>>
>>
>>
>
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