On May21, 2003 more than 100M shareholders sold MSFT at $24, quite sure that they will see lower prices.
Another 100M shares were bought the same day. They were all quite sure that they will see higher prices.
The majority have had some method to trade their money.
Many of them used the same...
You miss something here: All the variables DO NOT cancell out.
The use is the following :
A CloseviaMAp will be equal to a CloseviaMAk for two different periods p and k. This argument gives interesting results for tomorrows MAk, MAp and, mainly, for their probable cross.
We may express Close as a function of MA or EMA or DEMA with the
// Inverse functions, by D. Tsokakis, Aug 2003
p=20;fp=2/(p+1);
CloseviaMA=p*MA(C,p)-(p-1)*Ref(MA(C,p-1),-1);// [1]
CloseviaEMA=0.5*((P+1)*EMA(C,P)-(P-1)*Ref(EMA(C,P),-1));// [2]...
Well, tops and bottoms are usually treated the same manner.
A great example : An MACD divergence PLUS a stochastic divergence at o/b situations is an excellent Sell signal, if you are lucky to meet them the same day. Exactly the same at o/s levels.
As you see in
http://www.amibroker.com/guide/afl/afl_view.php?id=167
there is a function
WMA(Array,periods)
to create a weighted moving average for ANY array, not only Stochastics and ANY periods.
Here is my Virtual Close calculation/interpretation based on Siligardos method
The calculation of the Virtual Close
a. INTRODUCTION
The RevEngRsi indicator, as described by Giorgos Siligardos in June 2003 TASC issue,
returns the price Value required for the RSI to move to a certain level...
For a detailed analysis, see also
http://groups.yahoo.com/group/amibroker/message/41492
and make your own, objective, outperformane/underperformance estimation.
It is interesting to know how ^NDX underperforms its own N100 market !!
We usually read at
http://finance.yahoo.com/mrd or
http://finance.yahoo.com/mru
or elsewhere
that stock XXXX outperforms or underperforms the market.
Siligardos method [http://www.traders.com/Documentation/FEEDbk_docs/Abstracts_new/Siligardos/siligardos.html]
may give a simple visual...
MAs, in general, may give excellent informations, supposed you know what to do.
See for example
http://groups.yahoo.com/group/amibroker/message/41224
On the other side, if you do not know how to use them, you will probably waste time and money.
BTW, I think this is the T/A forum of ET.
There are some mistakes indeed.
But, it is not the case.
I may write an exact formula, if neccessary.
as for the backtesting, just ask [for the past] the cross(MA(C,15),MA(C,10)) condition. All values are already known for the past, and I hope we agree !!
Hi,
BTW, take a look at
http://groups.yahoo.com/group/amibroker/message/41111
It can also be executed via WL.
My greetings to Dion
D. Tsokakis
[I hope you sold the wheat contracts, if any...
Next year, if we still keep on...]
The analytic math expression is rather complicated. Do you really need it ?? Is there any application ??
10min before the end, you may know and buy [sell] at close...
You may add the 7th sell signal of Tue, May6 close.
RSOobi was at 49.5 and stopped there.
The signal anicipated the May7 situation : RSIobi dropped to 34.6 and the N100 market direcionality was 97% !!
Only 3 stocks were higher. The rest 97 were lower, up to -12%.
13/100 stocks lost more than...
There is an excellent step by step SAR calculation at
http://www.amibroker.com/library/detail.php?id=268
As for the application, SAR is excellent with smoothed trend detectors.
I mainly use the (CMO, SAR) system for the N100 market with very interesting results.