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ES Journal | Divergence918
- Thread starter Iwilldoit
- Start date
This is why you need to back test like 3,000 sample size and learn to program, but everyone is too eager to make money and have no idea of what they are doing. HERE IT IS: Only until you can breath chart patterns, swings, price structure, bar by bar, you should not add indicators. Indicators can be added as an aid to knowing how to read charts.
You have to be an extremely competent programmer to backtest N=3000.
Did you check out the formula for Stochastics? Do you know why this indicator does what it does? You should know what this indicator should do on each bar, but most think indicators are to bypass knowledge of reading charts when it is other way around.
I've been saying this to various of my colleagues for years. All of these TA indicators are calculated from past price data (even the immediately past is still past) and few who try to make use of these indicators ever bother to look behind them to see the math involved. They have literally no idea what aspect of the market behavior the indicator is measuring.
I've been saying this to various of my colleagues for years. All of these TA indicators are calculated from past price data (even the immediately past is still past) and few who try to make use of these indicators ever bother to look behind them to see the math involved. They have literally no idea what aspect of the market behavior the indicator is measuring.
I agree.
Everyone wants the fastest indicators and yet I select simple indicators and slower indicators. You ask most that do divergences based on an indicator can't tell you what price should be do and why. The "whys" and by looking at Price can offer other signals.
Did you check out the formula for Stochastics? Do you know why this indicator does what it does? You should know what this indicator should do on each bar, but most think indicators are to bypass knowledge of reading charts when it is other way around.
I said it before that Stochastics for me is worst indicator to use if you waiting for X to cross Y.
.
%K = (Current Close - Lowest Low)/(Highest High - Lowest Low) * 100
%D = 3-day SMA of %K
Lowest Low = lowest low for the look-back period
Highest High = highest high for the look-back period
%K is multiplied by 100 to move the decimal point two places
Have you considered the fact that afternoons are a different session than the mornings?
Yes I did.....but sometimes I am not available in the mornings...
This somehow reminds me of the often heard but apparently little heeded observation that the market does not care or even know about you, your position, your personal situation.
%K = (Current Close - Lowest Low)/(Highest High - Lowest Low) * 100
Yes, that is the formula to calculate the value of %K, and yes the following is also correct:
%K is multiplied by 100 to move the decimal point two places
But in plain terms, what then does the value of %k represent in terms of price and what it is doing now and over the immediately past n periods? The math won't help you if you do not know what it is yielding.
But in plain terms, what then does the value of %k represent in terms of price and what it is doing now and over the immediately past n periods? The math won't help you if you do not know what it is yielding.
I am having difficulty understanding the question, please could you elaborate in more simple terms?
@zbestoch
I am looking to backtest this model on other instruments....
Which other instruments would you recommend?
6E? NQ? CL?
@zbestoch
@Handle123
Which other instruments would you recommend?
6E? NQ? CL?
@zbestoch
@Handle123