Experiments in Technical Analysis

[karthikmarar]

Hi Amarnath


It is nice to see you posting some codes. Of course it would have been better if you were kind enough to give some information regarding the digital filters used in the calculation.

However it is very sad to see you reduce the content of this thread to just MACD, which forms a minor part of the whole thread. (less than 180 posts contain the word MACD)

Also please note that chintan is only trying to use carmilla pivots and he is not trying to rediscover it.

I also cannot understand your expectation from the beginners in TA to start with digital filters rather than the conventional stuff.

By the way my article Trading the MACD has been downloaded more than 3000 times so far. The afl have been posted in other forums by others. Not too bad ..eh

Also would you rather prefer that I close this thread and start some TIP service

Regards

Karthik

 

[chintan786]

Also would you rather prefer that I close this thread and start some TIP service

Regards

Karthik

no..Karthik...... we already have many..

chintan

 

[uasish]

Tips Service

The service you have given to us was i thought FREE

Nice to see Amarnath's code & the indomitable Kalyan pursing relentlessly.


Karthik i cant pay plz forgive me.

 

[kuriako]

..eh..........
................
Also would you rather prefer that I close this thread and start some TIP service

Regards

Karthik

Cochin is too crowded with "candle stick tipsters"!!!
What about a cosmopolitan setup?

 

[stockmanoj]

Hi Freinds,

I am New Entered in market though I have long experience in stock market since 1999. Right now I am running metastock as technical analysis. Going through Exploration in my spare time. Basically I work for software, Data Centre company. I would love to share my thoughts and gain market trend with other analyst.

Regards
Manoj

 

[chintan786]

welcome to traderji Manoj..

Chintan

 

[kkseal]

Ok here's an enquiry (on the 'wretched' MAs - Hope Amarnath is not around

I am sure many of you know about the Volume Weighted Moving Average (VWMA)

The formula for a 3 period VWMA would be
VWMA(C,3) = (C[0]V[0] + C[1]V[1] + C[2]V[2])/(V[0] +V[1] +V[2])
where
C = Close
C[N] = Close Nth bars ago V[N] = Volume Nth bars ago (with C[0],V[0] being the values for the last/current bar)
C[N]V[N] should be read as C[N]*V[N]

Now MA(CV,3) = (C[0]V[0] + C[1]V[1] + C[2]V[2])/3
and MA(V,3) = (V[0] +V[1] + V[2])/3

So VWMA(C,3) = MA(CV,3)/MA(V,3)

The above (coventional) form of the VWMA can be thought of as a SMA of Volume weighted Price and is seen to be equal to -> SMA of Price*Volume divided by the SMA of Volume (over the same period i.e. same length)

Now let us consider a Weighted average form of the same VWMA. I'll call it the WVWMA

WVWMA(C,3) = (3*C[0]V[0] + 2*C[1]V[1] + C[2]V[2])/(3*V[0] +2*V[1] +V[2])
(the only difference here is recent values have been given higher weightage, the latter progressively reducing from N to 1).

Now WMA(CV,3) = (3*C[0]V[0] + 2*C[1]V[1] + C[2]V[2])/(3 +2 +1)
= (3*C[0]V[0] + 2*C[1]V[1] + C[2]V[2])/6

and WMA(V,3) = (3*V[0] +2*V[1] + V[2])/6

So WVWMA(C,3) = WMA(CV,3)/WMA(V,3)

Now, can we extend the same logic for an Exponential form of the VWMA
i.e. would EVWMA be equal to EMA(CV,3)/EMA(V,3) ??
Or will that be a logical fallacy?

Regards,
Kalyan.

PS : Statements like MA(V,3) = ((V[0] +V[1] + V[2])/3 would not be correct in most formula languages (cannot assign a single value to an entire array) and has been used for notational purposes only.

 

[amarnath]

Re: Digital MACD

It's not just about the 'bicycle' or 'Harley-Davidson' MACD Mr Amarnath - it's the concept of Convergence-Divergence. Where's the harm in exploring it a bit? Why, perhaps a Convergence-Divergence (not necessarily MA-cd)of your short and medium term trend indicators can be attempted to merge them into a single indicator (one which can also be confirmatory for your 3rd indicator).

BTW, it's a misnomer to call the indicator you've posted a MACD as it's not really based on MAs.

Hope to see you as a valuable contributor to the thread (rather than just a critic) Will help us losers.

Regards,
Kalyan.

P.S. Was i right about what is being plotted?

What is valuable and wat is not is a pure personal preference, and i am not any associate of Harley-Davidson and his products and i dont need to learn to ride any cycle stuff from you mr.kkseal , For me its no harm if you exploit any thing you wish but this is public forum so like you, i do have equal rights to express any thing i wish and i dont want to keep arguments in which i dont see any value

I never called it as MACD but digital MACD and no were i think in this thread i said MA = Moving average

 

[amarnath]

Hi Amarnath


It is nice to see you posting some codes. Of course it would have been better if you were kind enough to give some information regarding the digital filters used in the calculation.

However it is very sad to see you reduce the content of this thread to just MACD, which forms a minor part of the whole thread. (less than 180 posts contain the word MACD)

Also please note that chintan is only trying to use carmilla pivots and he is not trying to rediscover it.

I also cannot understand your expectation from the beginners in TA to start with digital filters rather than the conventional stuff.

By the way my article Trading the MACD has been downloaded more than 3000 times so far. The afl have been posted in other forums by others. Not too bad ..eh

Also would you rather prefer that I close this thread and start some TIP service

Regards

Karthik

Sorry i don't have time to count how many pages here have word MACD and MA etc and digital doesn't means something so special and only experts can exploit them ?? and conventional doesn't mean its so simple that experts can ignore them totally say quantum mechanic looks so simple to physicist which doesn't mean it should be treated as complex subject or something no one will master.

And Mr.Karthik i thought you are focusing on quality but at end its seems your are looking more just at quantity of download and no of post you contributed like a average broker who counts for his comission

And at moment i dont need any TIPSTERS so even if you start one i cant subscribe for it sorry, as its just now you started to explore MACD i cant risk my funds based it

 

[amarnath]

Tips Service

The service you have given to us was i thought FREE

Nice to see Amarnath's code & the indomitable Kalyan pursing relentlessly.


Karthik i cant pay plz forgive me.

Buddy don't bet on tips based on MACD and MA systems better try tossing coin as it know well what i mean and a expert trader who if truely have some good stuff wont focus time on exploiting MACD again and try to rediscover wheels