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


To: peter n matzke who wrote (9496)2/19/1999 4:49:00 PM
From: Richard Estes  Read Replies (2) | Respond to of 12039
 
The example refects if you used smaller periods of nearly 50%, you would get quicker response. Which might mean the short term indicator acts quicker, not because it is basic, but because it is short term. The compilation is not the cause, it is periods used.

The shorter the periods, more chance for whipsaws, more trades and more losses. Can not envision max profit coming from short term. Unless you had a high % of winners and kept money busy in similiar movers. But that is rare. Normally Buy and hold will beat anything. But it is a myth, we test from one point to another. In a bull you would expect a lot of positive movement in the long term. But what would be the reason for anyone to buy on a certain date, years back. we force B/H to buy first day, the indicators have to wait their periods to get up to speed. If you put a 200 MA you will have to wait nearly a year for it to start measure then you might find that buy trigger may have gone off 6 months before that.

I can not agree that complexity is negative, a logically developed indicator is good no matter how many features it has. The short term presents more risk more whipsaws. Position/intermediate trading can offer better profits. Of course, I don't know what stocks you are looking at, how many, and how test was set up. Proves again, everyone differs in what they see.

maybe I don't understand what you are saying.