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Strategies & Market Trends : Technical Analysis- Indicators & Systems -- Ignore unavailable to you. Want to Upgrade?

To: Brian Lempel who wrote (3179)	10/14/1998 8:12:00 AM
From: William H Huebl	Read Replies (1) \| Respond to of 3325

Brain, In a word, no. I suspect NOBODY is willing to give away information which works... but, again, Fosback's book will tell you what doesn't. Here is a catalog which is only about a year old and I consider out of date: - 26 Trend indicators from Aroon to Zig Zag - 10 Volatility indicators from Average True Range to Volatility Option - 22 Momentum (THEY'RE POPULAR) indicatrors from Accumulation Swing Index to Williams' A/D - 5 Cycle indicators from Cycle Lines to MESA Sine Wave Indicator -18 Market Strength Indicators from Accumulation/Distribution to Volume Rate-of-change - 10 Support and resistance indicators from Andrews' Pitchfork to Trendlines If I were in your shoes, I would pick maybe RSI and Stochastics and go with tests over 3 years using daily, weekly and monthly charts. I think your grading may have to be subjective unless you have a capability of systems testing for buy/sell decisions or correlation studies to show how closely the indicator fits a future time period. Murphy's previous book on Technical Analysis is definitive and may help you also. You could e-mail Equis and get a demo package to test with, I would imagine. Good luck. Bill PS I have at least 5 times the numbers listed above for my own proprietary indicators... some of which are terrible and some which work with certain stocks and indices some of the time.

To: Brian Lempel who wrote (3179)	10/14/1998 9:32:00 AM
From: Richard Estes	Read Replies (2) \| Respond to of 3325

In my 30 years of TA, no valid studies have been performed. There are too many variables. Will you run only on stocks you select? on all stocks? Will you restrict yourself to one indicator? what periods will you use in indicators? what is your goal for proof? what software and data will you use? Will you have more than 5 years data? Let say you compare a 200 day MA to a 21 day MA. the 200 MA requires nearly a year to have first data point, the 21 is only a month. The 200 misses the good or bad results of that 200 day period. An indicator that gives good 5 day results won't beat buy/hold unless you take into account the time money was at risk. I could go on for pages giving you reasons why NO valid study is available. And you can't compare to buy and hold or funnymentals. I know of no valid entry/exit measure in funnymentals, nor am I aware of entry for buy and hold except where your data starts. I wish you luck taking on such a project. TA is not subjective, people who use it are. use MACD(13,34,89) as one of your indicator