|
PureBytes Links
Trading Reference Links
|
In the May 2002 issue of Technical Analysis for
STOCKS & COMMODITIES,
John Ehlers published an algorithm which he termed
Center of Gravity and
shows that by comparing the CG value for 1 bar ago
to the CG value of the
current bar, all significant swings could be
detected.
I took his algorithm and added a bit such that
whenever a change in
direction was detected by CG then I looked back 1/2
the length of the
number of bars being used to compute CG and
detected the exact
highest/lowest bar within that range and set that
as the reversal bar.
This was structured similar to the Swing_Lee_Simple
function and
was termed the Swing_Ehlers_Simple
function. In both cases the
routines returned a signed value indicating how
many bars back it
was to the last turn. If the sign is negative
then the last pivot is a high
and prices are trending down.
The attached chart makes a direct comparison of the
two routines.
In the case of the Ehlers routine, it was necessary
to use an NBars
parameter of 12 to get close to what an NBars
parameter of 8 in the
Lee routine returned.
The Ehlers routine consistently detects equivalent
pivots one or two
bars earlier than the Swing_Lee routine BUT it also
is prone to make
false picks at times.
It does not appear that the false picks would be
interpreted incorrectly
by any rational person and so there may be a place
for the Ehlers
routine in indicators/systems designed to take
advantage of Pivots.
This is being published to 3 lists and I apologize
to those who get
multiple copies of this but I consider this one of
the most significant
developments reported in this area in a long
time. Feel free to forward
this to other lists that have an interest in such
matters.
Clyde
- - - - - - - - - - - - - - - - - - - - - - -
- - - - -Clyde Lee
Chairman/CEO (Home of
SwingMachine)SYTECH
Corporation email: <A
href="mailto:clydelee@xxxxxxxxxxxx";>clydelee@xxxxxxxxxxxx 7910
Westglen, Suite 105
Office: (713) 783-9540Houston, TX
77063
Fax: (713) 783-1092Details
at:
www.theswingmachine.com- - - -
- - - - - - - - - - - - - - - - - - - - - - -
-
Yahoo! Groups Sponsor
ADVERTISEMENT
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
Attachment:
Description: "junk.gif"
|