Experiments in Technical Analysis

[AMITBE]

Hi Karthik...
What's important is that one is constructive at as many levels as is possible.
To that end, you are doing a fine job indeed:
Not only are you widening your own horizons while exploring trading systems, indicators etc, you are also showing the way to new comers and the old hands alike for what can be done and how to do it, from thinking a strategy through to translating it to afl files, and so on. That the material is all visually explicit and pleasing too, is additional evidence of your wholesome approach to work.
Do carry on please. This thread has the potential of being amongst the topnotch at this great forum.

What you need to diligently do is, not be daunted by utterly superfluous and no-account remarks and responses. There's absolutely no substance there.

Look forward to a lot more of the good stuff Karthik.
Keep it up.

 

[Saint]

Hi Karthik,

Cannot have put it better than Amit.

There are many types of people here,young/old,novice/experienced,technical/
fundamental,day/swing/position,discretionary/mechanical...........the list goes on.If there are people who do not benefit from one thread,they are free to ignore it.So long as there are people who benefit from your thread,and log in day after day looking out for your thread,well,........that's that.

I suppose suggestions are always welcome among friends,but the harshness,aggressive behaviour and tone of language used must be modulated,however good the intentions may be.


A great thread,my friend,and looking to many more posts from you........(you don't get to escape that easily!! )

Saint

 

[AJIT14]

Friends

Nowadays I see lot of interest in Technical Analysis among the members. Saint is doing a wonderful work in teach Technical Analysis with his great Thread Teach a Man.
The logical step normally one takes after learning the basics of TA is to experiment with various Indicators and trading systems. We all go through this in our endeavor to come up with a good, workable, profit making Trading system. These experiments teach us lot about the behavior of various indicators, setup and the pitfalls.

If we sharing our experiments we can gain more insights, get new ideas, get to know the pitfalls and increase our knowledge. So I am starting this thread as a platform for sharing our experiments, ideas and our own research.

I will be posting some of my experiments with trading system and indicators. I also plan to cover some systems I have come across. Also I will talk about some of my custom indicators. But all these studies would be based on short to medium term perspective. Intraday traders will not find anything for them I suppose. Maybe these will work on shorter time frames also, but I have not tested these for such time frames. I will also post the Meatstock codes and Amibroker afl whenever required

Please note this will be a public thread and everybody is encouraged to post their studies and experiments so that we all can share and learn.

Soon I will kick start the thread with my first trading system.

Warm regards

Karthik

Sir
Pl. mail me ur program to my e mail at adress [email protected]

i will go through it, I am using TREND software now.

I have downloaded nowAPTISTOCK-- but donot know how to use it so pl. guide me

Thanks

Ajit14

 

[karthikmarar]

Hi all

Let me first thank Saji, Moneypic, ziya, Jraj, Ger06,avinash and Kuldeep for expressing their support for the thread. Very happy to note that some are indeed benefited by this thread.

Now even the seniors had endorsed the view that the thread would not mislead the members. Thanks Amit and Saint. Ahhh… Saint it was indeed a good escape route..

So we can proceed on our journey of experiments in Technical Analysis.

Warm regards

Karthik

 

[karthikmarar]

Hi Amarnath

I have no hard feelings about whatever you expressed. Whatever you said about trading systems is very true. This thread is not covering the Trading systems in details. It is only talking about various experiments in the building blocks of a good trading system. It is only to provide ideas and examples so that the individual would eventually have a system of his own and a fat bank balance

I was only little worried if the thread would mislead the newbie and I would be the last person to do it. Of course the experienced trader would hardly find anything in this thread, but can definitely contribute to it.

I will definitely take up your ideas and would cover aspects of building the MM into the trading systems and also contra trend systems later in this thread

Warm regards

Karthik

 

[moneypick]

Hip...Hip...Hure.... Big Bro come in....

Hi Karthik,

I want your help on the following situation:

1) In uptrend market, Momentum Oscillator give us many overbought signal,
How can we determine the market have positive breath and we donot
sell our holding.

2) In downtrend market, Momentum Oscillator give us many oversold signal,
How can we determine the market have negative breath and we donot
buy.


Please guide us with example.

Thanks & Regards,

(moneypick)

 

[casoni]

Hi Karthik,

Cannot have put it better than Amit.

There are many types of people here,young/old,novice/experienced,technical/
fundamental,day/swing/position,discretionary/mechanical...........the list goes on.If there are people who do not benefit from one thread,they are free to ignore it.So long as there are people who benefit from your thread,and log in day after day looking out for your thread,well,........that's that.

I suppose suggestions are always welcome among friends,but the harshness,aggressive behaviour and tone of language used must be modulated,however good the intentions may be.


A great thread,my friend,and looking to many more posts from you........(you don't get to escape that easily!! )

Saint

YES I TOTALLY AGREE WITH YOU....IF SOME ONE DOSENT LIKE IT HE SHOULD NOT VISIT....DEAR KARTIK PLS DONT CLOSE THIS THREAD.....

 

[ccitrader]

Re: Experiments in Technical Analysis (CCI)

Hi all,
I am new to trade world & I came to know this great Indian forum since last few days,
I have visited www.woodiescciclub.com,
After much reading & thinking from this site I have made a simple but usefull formula for Metastock,

I want to make some formulas which can give more than 90% accuracy in trade .............with your help......!!!!

There is a combination of CCI-20 , CCI-6 & candle pattern in this formula.

It works well but still some additions are required,

Please give your openions & advices,

In Metastock open expert > new & paste this:-

-------------------------------------------------------------
{BUY SIGNAL}
Ref(C,-1) < Ref(C,-2) AND Ref(C,-1) < Ref(O,-1) AND O > Ref(C,-1) AND C < Ref(O,-1) AND C

> Ref(C,-1) AND C > O AND Cross(0,Ref(CCI(20),-1)) and ref(cci(6),-1) < ref(cci(20),-1)

and ref(cci(6),-2) < ref(cci(20),-2)
--------------------------------------------------------------

Thanks,

ccitrader

 

[karthikmarar]

I want your help on the following situation:

1) In uptrend market, Momentum Oscillator give us many overbought signal,
How can we determine the market have positive breath and we donot
sell our holding.

2) In downtrend market, Momentum Oscillator give us many oversold signal,
How can we determine the market have negative breath and we donot
buy.


Please guide us with example.

(moneypick)

HI moneypick

Like you said during a up trend the momentum oscillator, let take for example the stochastic oscillator, gives many overbought and over sold signals. The general advice is that the momentum oscillators do not work well during a trending market and works well during a ranging market. However if you notice that in an up trend the stochastic oscillator oversold conditions gives good BUY signals. See the attached chart. These Buy signals correspond to the resumptions of the up trend after a pull back. The BUY signals works well if you combine with a positive MACD signal. Selling based on the oscillator overbought condition will put you out of the market much before the trend is reversed. Base your sell signal on other criteria like trend line breaks, the stock making a lower pivot low etc.

In the same way in a down trend the stochastic gives good Shorting signals based on overbought condition and never buy based on the oscillator over sold condition during the downtrend. After a downtrend again the Buy signal should be based on the stock making a higher high and trend line breaks etc.

we can never catch the top and bottom. Even if we are able to catch 80% of the trend we make good money.

So in general the take only the Oscillator Buy signals in an up trend and Sell signal during a downtrend. In a ranging market we can use both the Buy and Sell signals to trade the range.

Hope this clarifies your doubt. Feel free to ask if it is not clear.

warm regards

Karthik

 

[marcus]

I just want to say there is no need for custom indicators at all, if anyone has read the turtle rules they use very simple entry and exit rules, in fact its so simple you'd prolly doubt they are the entry rules for the famous turtle system. Breakouts is the most common based on wither MA crossover systems or bollinger bands.

I don't know why ppl try to build custom indicators.

I think karthik is doing a great job, I'd also hope he can discuss or gives us some ideas for counter trend systems so we get both sides of the coin.

Amarnath's system seems like magic, he gets in at the exact bottom and gets out at the exact I mean EXACT top, seems to good to be true.

If he's that good whats he doing hanging about at traderji?