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

To: steven d. zapf who wrote (9625)	2/27/1999 1:37:00 PM
From: Richard Estes	Read Replies (1) \| Respond to of 12039

While addressed to Dave, who will probally have his answer, I thought I would response on the fitting of data. Don't do it. It isn't a matter of an indicator doesn't work with some but that stocks are performing in a way that negate the function of the indicator. Some stocks range, some stocks trend. You are looking for a system that you can settle into that applies to the majority of stocks not one stock. A system that you trust not to do you harm but allows a good return on capital. Fitting indicators to one stock won't do that. Changing the variables for an indicator is good, it is done to fit your mindset or style. Don't change an indicator to fit a stock. You could change to fit a group of many stocks like trending vs. ranging, volitile or non volitile. BTW: I think I used TSV(21)with 14 MA. see what that loks like. Have not used TC2000 in 2 years.

To: steven d. zapf who wrote (9625)	3/1/1999 12:11:00 PM
From: David R. Evans	Read Replies (1) \| Respond to of 12039

Hello Steve, NO...... The trick to TA is trying to get something that will work on a consistent basis..... When you start changing the values around you lose the consistency and can no longer trust the results.... If I decide I want to use a MACD (8-17-9) as my entry, I want to know how often this indicator will be right AND, how often it will be wrong. If I start changing the values for each stock I will never know.... Now, if you decide you just want to trade the S&P 500 then you can fill you database with just S&P 500 stocks and test them.. In this case you would not care how the indicator worked with small caps because you are not trading small caps. You WOULD care how the indicator did with S&P 500 stocks so you would have to keep it's values intact during your test... In the above case, you may want to change the MACD (8-17-9) to a MACD (13-34-89) to see which one gave better results..... No problem, as long as you test the entire database again with the MACD (13-34-89). Then you have apples and apples...... Does this make sense???? Dave Evans