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Strategies & Market Trends : Technical Analysis - Beginners

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To: MechanicalMethod who wrote (11895)7/9/2001 8:04:47 AM
From: Julius Wong  Read Replies (2) of 12039
 
MM:

We can apply engineering/scientific data analysis techniques to the market data.

For example, when I compare stocks, I use dimensionless (normalized) price and dimensionless volume. I normalize stock price with respect to its 52 week range: '100' is new 52 week high, '0' is 52 week low.

Another application is conflict resolution. I use TC2000 and I have seen some less effective TC2000 scans. For example,

(sti) AND (lti)

where 'sti' is short term indicator, 'lti' is long term indicator. Conflicting requirements often filtered out good signals. Many TC2000 scans should be shortened, or replace the 'AND' by 'OR'.

Also keep the scan simple and short. In solving equations, we want the number of equations match with the number of unknowns. In stock market the basic data are price and volume. Complex indicators and systems require more data which are not available.

Best,
Julius
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