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Strategies & Market Trends : Technical Analysis- Indicators & Systems
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To: Bill Sandusky who wrote (1617)6/17/1997 3:34:00 PM
From: Richard Estes   of 3325
 
You shouldn't use crossover points. The relationship is minimised or magnified depending on scale of chart but relative relationship is present.

I always say if you combine indicators, you should do so based upon a logical relationship. We should be able to explain why their combination works. Then if we system test the combo, we should see results go down if we remove an indicator. The amount it adds or subtracts is reflective of its power. we might find that the additive effect goes away with a larger nimbers of stocks tested.
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