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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (29813)	4/25/2003 12:56:13 AM
From: h8_2_b_l8	Read Replies (1) \| Respond to of 30712

It was really developed over time after many years of using multiple technical indicators on an individual basis and trying to figure out how well in sync all the indicators truly were. I had about 12 indicators I watched that all had a similar characteristic, they rarely ever turned at random intervals, they would almost exclusively get from overbought to oversold and could possibly remain that way for some time. A simple range from 1 to 100 that can remain at or near 0 or 100 indefinitely is of little use, so I developed some algorithms to turn multiple views of the same data points into portions of a larger over riding formula. Its similar to the idea that 2 data points create a straight line but lots of straight lines (i.e., data points) can make the rounded edge of a circle. Sorta shaping the data points to create a clearer picture. After about 5 years of tinkering and changing the formula, I kind of found the golden clue that tied it all together (unfortunately it was a few weeks AFTER the October bottom). I back tested it through 1997 and the only two misses were a sell it issued during the insane liquidity run in Dec of 1999 and a buy it registered on 9/10/01. The main problem with the formula is that it is based on a closing basis so you could miss the top by quite a bit on an intraday blow-off move, but I don't really care since its an indicator that's good for 4+ weeks, no rush.