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Strategies & Market Trends : Metastock 6.0 for Window -- Ignore unavailable to you. Want to Upgrade?

To: TA2K who wrote (2272)	9/21/1998 2:54:00 AM
From: Craig DeHaan	Read Replies (1) \| Respond to of 4056

Nicholas, In a word - no. For initial trade position opportunities where shorter term indicator crossovers can better confirm moves (like Vidya or VariableMA511(C,13)) used w/ the 89MAs, there will usually be retests, but particularly when 89TSF is still downsloping as price first breaks thru and its slope eventually turns positive. If your trade perspective is short, this wouldn't matter. Convergence and crossovers of the 89 linear regression (which is the same as TSF in MSWIN) and 89EMA seem more important in intermediate to longer trend changes with slopes acting to track the trend, providing support or resistance points during moves. Used together they suggest subtle timing that a chartist's eye can't always distinguish. And the interaction helps forecast trend direction and defines specific measures that you can react to. I think of positive slope as a measure of potential strength of trend even tho it measures past movement. For eg. Richard's 89TSF+8 is especially accurate in calling breakdowns with an 8 day delay. Usually the slope will not have turned negative until after the collapse (a mathematical reality), unless there is protracted price consolidation. Since 89 is an intermediate indicator the slope reactions will lag price. But LinReg also forecasts direction by best-fitting an 89d slope to the most recent days price, so it also points to an expected direction. In that way it acts to help us form better assumptions of future action. Look at it them in charts and I think you'll understand what I'm fumbling around here. Also check this link. Doug summarizes 89LRMA and 89EMA interactions in 1/10 the space. Message 5795778