four
5,087 posts
msg #88478
- Ignore four |
2/21/2010 1:51:12 AM
http://scientifictrader.com/stock_trend.htm
Anyone like to turn this into a SF filter?
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chetron
2,817 posts
msg #88482
- Ignore chetron
modified |
2/21/2010 10:10:40 AM
maybe...
perfected.....
WELL MAYBE NOT, BUT BETTERER...
SORRY, WHAT WAS I THINKIN'.....
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trendscanner
265 posts
msg #88542
- Ignore trendscanner |
2/22/2010 9:40:15 PM
It's an excellent filter but I find the premise of the article, the use of RSI(9), a momentum oscillator, as a trend indicator, to be of questionable reliability. The article's author includes one chart to demonstrate that the use of RSI(9) as a trend indicator "works". My guess is that backtesting of the system would show many whipsawsand would not produce very good consistent returns. Based on his argument, one could use stochastic or any other oscillator as a trend indicator too. I could probably find many charts that would show that any oscillator can "work" as a trend indicator, at least for certain charts under certain conditions.
Not knocking this particular author but I think a lot of the articles that show up in trading magazines are written just to fill up space and aren't based on any better methods than many of the filters posted here.
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johnpaulca
12,036 posts
msg #89125
- Ignore johnpaulca |
3/5/2010 8:56:18 AM
Moving averages are used to measure trends, oscillators are used for mesuring cycles i.e stochastic, MACD is used to measure momentum and RSI is used the measure the strength of the move.
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chetron
2,817 posts
msg #89137
- Ignore chetron |
3/5/2010 10:41:58 AM
THANX, JP
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