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Strategies & Market Trends : TA - 1998 -- Ignore unavailable to you. Want to Upgrade?

To: Paul Beattie who wrote (147)	2/10/1998 5:24:00 AM
From: Spots	Respond to of 177

>>Looking forward to meeting you there. If I make it, I'll soon fix that<ggg>. OK, the "Spots indicator." Following the good advice given somewhere way back to look at lot's of charts, I've had QP for a week and a half and have been scanning the entire database just looking. I'm working through all the QP builtin metrics to get a feel for what they tell me. One of the first things I tried was overlaying the weighted and unweighted MAs. Not knowing anything better, I just took the default 20-day MA for both. (I couldn't find anywhere how QP computes the weighted MA--how's it weighted?) As expected, the weighted MA led the unweighted MA. No surprise. What I didn't expect, though I suppose I should have, was how clear the separation of the MAs was in up and down trends, and how clear the crossings were on reversals. Another surprise was how long most charts go on without crossing, and how relatively little time many charts spend with the two ambiguously close together. I tagged this mentally as the "Spots indicator", and I've been comparing it to QPs built-in indicators. I'm surprised that it gives the same signals as (say) MACD, and gives them more clearly (to my inexperienced eyes at least). Lags, though. I tried a couple of system tests on purposely horrible stocks (EK, for one) and didn't come out too well. About even to buy and hold (or in EK's case, "buy and lose"). Well, it's been a great learning tool, and I'm going to continue playing with it in that light, mostly as a starting point for understanding the standard indicators. Been playing a bit with 2nd derivatives and I think I can move 'er forward a tad. Needs volume incorporated, too. Sounds like I'm going to have to shell out for MS. I started to put this on the TA-Beginners thread (I'd never have put it anywhere except Chan foolishly asked), but hey, I don't really think of this as a serious proposition (except self-tutorially), so here is better. Out of the way and less disruptive. Little comic relief. Regards, Spots