The rainbow system (which, incidentally, works with WOW with some minor tweaking), does a good job of pinpointing highs and lows. Some sell signals are right at the tops. But the system gives a lot of signals, and the profits don't seem all that good in system tests, even when you play with OPT1.
Andy Gabor's StochRSI(8,5) does as good a job pinpointing tops, I think, but again, you get lots of signals.
For those of you with WOW, the program doesn't have a "cross" function, so the formula for Enter Long would be:
fml("Rainbow Uptrend Binary Wave")>.5
The exit formula is:
(fml("Rainbow Oscillator")<0
and sum(ROC(fml("Rainbow Oscillator"),1,$)<0,2)=2
and fml("Upper Rainbow Band")<opt1)
OR
200*(c-ref(c,-7))/(c+ref(c,-7))<-7
where opt1 can range from 30 to 60 (I set the default at 30).
The system is from an article by Allan J. McNichol in this month's issue of Equis. (Why wasn't he at TAONJ?)
The components of the formula can be found at the Equis site, with one exception, I think.
The Rainbow Uptrend Binary Wave is in TASC, but I didn't see it at the site. Here's the formula:
Mov(C,2,S)>
Mov(Mov(C,2,S),2,S) AND
Mov(Mov(C,2,S),2,S)>
Mov(Mov(Mov(C,2,S),2,S),2,S) AND
Mov(Mov(Mov(C,2,S),2,S),2,S)>
Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S) AND
Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S)>
Mov(Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S),2,S) AND
Mov(Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S),2,S)>
Mov(Mov(Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S),2,S),2,S) AND
Mov(Mov(Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S),2,S),2,S)>
Mov(Mov(Mov(Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S),2,S),2,S),2,S) AND
Mov(Mov(Mov(Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S),2,S),2,S),2,S)>
Mov(Mov(Mov(Mov(Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S),2,S),2,S),2,S),2,S) AND
Mov(Mov(Mov(Mov(Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S),2,S),2,S),2,S),2,S)>
Mov(Mov(Mov(Mov(Mov(Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S),2,S),2,S),2,S),2,S),2,S) AND
Mov(Mov(Mov(Mov(Mov(Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S),2,S),2,S),2,S),2,S),2,S)>
Mov(Mov(Mov(Mov(Mov(Mov(Mov(Mov(Mov(Mov(C,2,S),2,S),2,S),2,S),2,S),2,S),2,S),2,S),2,S),2,S)
Truly, the task of trying to predict a stock price with just one simple moving average can be as challenging to me as the formula above, so I launched into it with the same blind enthusiasm, heedless of the fact that its meaning was beyond me.
Brooke |
