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Strategies & Market Trends : Technical Analysis- Indicators & Systems

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To: Bill Sandusky who wrote (1535)6/17/1997 1:31:00 AM
From: Paul Beattie   of 3325
 
Bill, regarding transforming the BradCCI and its stddev plot for testing purposes

Using MSWIN, I was first impressed at the apparent timing I observed when overlaying these two indicators (with different scales) in the same window. Deeper probing revealed that part of the effect is caused by MSWIN, which adjusts min and max on both scales to fit them in the window. Since I tended to place the area of interest in the horizontal centre of the window, MSWIN scaled based on min/max value for dated both previous to and after my area of interest.

By including all data in the window, the overlay doesn't have the same impact. I tried using the min/max for each scale over the past 28 days. Aside from being pretty ugly, it didn't work well either - it's hard to describe quickly. I'll play with it some more and let everyone know if I make any progress.

For now, I think that there is still value in seeing the "relative" behaviour of the two indicators together. BradCCI goes high, then starts coming down. Stddev runs along low, then moves up in a trend. If BradCCI pops very high, there is a tendency for BradCCI's climb to continue for some time (and they are positioned to cross eventually).

Depending on the zoom factor I use with MSWIN, I can make their relationship to one another vary widely in terms of when they cross.

Oh well..... Thanks for bringing these indicators to our attention. I'm sure the chart you sent will help me understand better how you use them. Much appreciated.

Regards, Paul
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