StockFetcher Forums · General Discussion · Best free chart program<< 1 2 3 >>Post Follow-up
nikoschopen
2,824 posts
msg #51278
Ignore nikoschopen
4/21/2007 10:22:58 PM

Max sez "Niko, I'm disappointed. The infamous dma(28,-14)? LOL!"

True indeed, lol. But you obviously haven't read my previous posts with regards to the so-called infamous indicator. First, I don't add much weight to DMA(28,-14) alone, but it can work wonders if used appropriately in conjunction with the middle Keltner line. It will not only get you in at the right price, it will also get you out in a timely manner. Just ask as214, who should by now know this trick inside and out (wink wink).

as214
184 posts
msg #51279
Ignore as214
4/22/2007 8:11:47 AM

Thanks Niko for the detailed information! I learn from everybody here, even as a value oriented guy who doesnt put too much emphasis on indicators I am still very intrigued with this stuff.

Niagara
49 posts
msg #51280
Ignore Niagara
modified
4/22/2007 8:47:47 AM

nikoschopen,
You have stated previously that you use the Keltner Channels. They fall into the general class of envelope indicators, of which there are several. One side is over sold, and the other overbought. Why the Keltner Channels vs other channels, moving average envelope, n day price channel, Woods Float Channel, etc.
How do you play the channel, and the center line, especially together with the DMA (28,-14). Displacing it back that far I would think would not give predictive value. What do you think of displacing it forward, and if so how much.

TheRumpledOne
6,358 posts
msg #51281
Ignore TheRumpledOne
4/22/2007 2:08:46 PM

You guys really should just listen to Muddy and WAIT FOR GREEN!

Put your toys (indicators) away!





nikoschopen
2,824 posts
msg #51282
Ignore nikoschopen
4/22/2007 4:15:17 PM

"Why the Keltner Channels vs other channels, moving average envelope, n day price channel, Woods Float Channel, etc."
__________________________

I suppose they're all the same when you don't attach too much meaning. One of the main reasons why I prefer to use the Keltner channel (KC) over other envelopes is that the upper and the lower channels move dynamically, namely self-adjusting, while the MA envelope moves uniformly. This is because KC is taken one step further than the MA envelope by adding volatility into the formula. Hence, if I'm not mistaken, KC shares similar characteristics as Bollinger bands but it's outer bands are based on volatility rather than the standard deviation used in the latter. Of course, I'm not nuanced enough to know all the difference, but I feel most secure in using KC (with Bollinger bands) when trading.

"How do you play the channel, and the center line, especially together with the DMA (28,-14). Displacing it back that far I would think would not give predictive value. What do you think of displacing it forward, and if so how much."
__________________________

It's my opinion that the basis for any predictive value rests solely upon the trader who makes the decision and not on the indicator used in the decision process. I, for one, place no value on DMA(28,-14) because it ain't the primary indicator within my trading arsenal. The combination of Bollinger bands and Keltner channel always takes the center stage. The DMA is also instrumental but it takes a back seat because it serves as only a rough guide in telling me where the turn might come.

For example, when the center Keltner line falls below the DMA, it's telling me "hey, it's looking pretty damn bearish at the moment...maybe you should get ready to pick up some of this wretched stock in the near future." So I wait patiently for a pattern to emerge from the
Bollinger/Keltner interaction. On the other hand, when the center Keltner line crosses above the DMA, it's telling me that I should dump some of my position because the rally is losing momentum.

With regards to displacing the DMA forward, I do use displaced EMA(7,5) in my daily chart.

stktrader
7 posts
msg #51284
Ignore stktrader
4/22/2007 5:10:17 PM

Although I did not get the chart screens that I wanted up today on QT, I suppose that I will over time. I made the brave move today to delete the Tradestation software from my two computers. The basic interactive charts in Ameritrade aren't bad, and with my four monitors, I think that I can jury-rig up a decent trading setup. YHOO usually stays under the BB (20,-3.5) for a few days on big gap downs from the past. Monday could be a good buying opportunity if the market is up. stk

maxreturn
745 posts
msg #51290
Ignore maxreturn
modified
4/23/2007 2:09:47 PM

Newsflash. The dma(28,-14) is nothing more than a 14 sma. Why not just plot the 14 sma? Why delude yourself by looking at the historical plot? It means nothing. Think about it. Today you plot a 28 day moving average and move back the plot 14 days. Would be nice if you could jump into Dr Evil's time machine and go back 14 days and trade it...but alas, you can't.

SAFeTRADE
311 posts
msg #51291
Ignore SAFeTRADE
4/23/2007 2:37:32 PM

Dead on!

nikoschopen
2,824 posts
msg #51293
Ignore nikoschopen
4/23/2007 4:19:02 PM

Max,

I think everyone here is smart enough to know that you can't trade what's already happened 14 days in the past. But does that mean it's useless? Then why do you pour over countless hours on weekly and monthly charts? Moreover, you might interpret the DMA(28,-14) based on prices alone, but I use it in conjunction with the Keltner line. The two approaches ain't exactly the same in my otherwise not so humble opinion. Plus I expounded my useless thoughts on this subject matter in the above posts, which you most likely skimmed over.

I'm more than aware of the fact that you and RIGGS the purveyor of DMA had gone over this on numerous occasion. I have no wish to enter into that uninspiring battle of witless bickering. I suppose TRO was right after all: it ain't what you do with ure indicator, it's how you trade with it. In another word, if you can constantly grind out money using the damn thing, who cares?

maxreturn
745 posts
msg #51294
Ignore maxreturn
4/23/2007 5:05:17 PM

Niko, who are you to talk about witless bickering? I've purveyed recent exchanges between you the WSG that would definitely qualify. The answer to your question is that it is obvious that some newbies have been "taken in" by the historical plot of this indicator, somehow believing that it has some magical predictive qualities So if it's going to mislead others, why use it?

StockFetcher Forums · General Discussion · Best free chart program<< 1 2 3 >>Post Follow-up

*** Disclaimer *** StockFetcher.com does not endorse or suggest any of the securities which are returned in any of the searches or filters. They are provided purely for informational and research purposes. StockFetcher.com does not recommend particular securities. StockFetcher.com, Vestyl Software, L.L.C. and involved content providers shall not be liable for any errors or delays in the content, or for any actions taken based on the content.


Copyright 2016 - Vestyl Software L.L.C.Terms of Service | License | Questions or comments? Contact Us
EOD Data sources: DDFPlus & CSI Data Quotes delayed during active market hours. Delay times are at least 15 mins for NASDAQ, 20 mins for NYSE and Amex. Delayed intraday data provided by DDFPlus