I am convinced that one of the best methods of
picking
reversal points from which to trade any symbol can
be
achieved using a method that basically uses a
Linear
Regression curve as the "average" of the symbol and
then fitting the balance of price behavior using
three
Fourier components each of which is calculated
using
two cycles of the period selected for each cycle
used.
The attached are studies of CL and GC using this
method.
Basically the model trades on a transition from an
up
direction to a down direction or a down direction to
an
up direction of the composite curve of the LR and
3
Fourier components.
As with any analytic of this type the inflection points
are
likely to be at some very short time period after
the
actual inflection points in price.
Each pictue has a report based on the model trading
so
you can judge the effectiveness of this
approach.
In the case of CL you can see that a very complex
set
of periods are involved whereas with GC we are
dealing
with a single peeriod around 59 days.
Clyde
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Clyde Lee
Chairman/CEO (Home of
SwingMachine)
SYTECH
Corporation email: clydelee@xxxxxxxxxcom
7910 Westglen, Suite 105
Office: (713) 783-9540
Houston, TX
77063
Fax: (713) 783-1092
Details
at:
www.theswingmachine.com
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