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Strategies & Market Trends : Technical Analysis - Beginners

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To: steven d. zapf who wrote (9625)	3/1/1999 12:11:00 PM
From: David R. Evans	Read Replies (1) of 12039

Hello Steve, NO...... The trick to TA is trying to get something that will work on a consistent basis..... When you start changing the values around you lose the consistency and can no longer trust the results.... If I decide I want to use a MACD (8-17-9) as my entry, I want to know how often this indicator will be right AND, how often it will be wrong. If I start changing the values for each stock I will never know.... Now, if you decide you just want to trade the S&P 500 then you can fill you database with just S&P 500 stocks and test them.. In this case you would not care how the indicator worked with small caps because you are not trading small caps. You WOULD care how the indicator did with S&P 500 stocks so you would have to keep it's values intact during your test... In the above case, you may want to change the MACD (8-17-9) to a MACD (13-34-89) to see which one gave better results..... No problem, as long as you test the entire database again with the MACD (13-34-89). Then you have apples and apples...... Does this make sense???? Dave Evans

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