Experiments in Technical Analysis

[asnavale]

Re: Bollinger Band Gap

Hi All,

I am trying to use this formula but its giving me error in Amibroker. Can someone help me out in rectifying the error -

I am getting this error -
Error 29,
Variable "bbtopsell" used without having been initialized

Please help.
Thanks in advance.

Cheers
Abhi

Hi Abhi,

The error appears to be due to the two varables 'fopen' and 'fclose'. The identifiers 'fopen' and 'fclose' are reserved for file operations and cannot be used as variable names. Change them to something else e.g. change fopen to fo and fclose to fc in the AFL and try. It may help.

Regards

-Anant

 

[asnavale]

Hi all,

Here are some comparisons of the earlier MABIUTS-HB and the present RSI Filter based system:

From Jan 15, 2007 I was using MABIUTS-HB for 'System Implementation Excercise'. The results have been posted daily in the thread "System Implementation Excercise".

For the period Jan 15, 2007 till Jan 31, 2007 the MABIUTS-HB generated 226 Buy signals and 249 Sell signals. If the RSI Filter based system was used for the same period, I would have got only 51 Buy signals and 21 Sell signals.

Out of the 51 Buy signals from the RSI Filter based system 39 are still open and 22 of these open positions are still going up.

Similarly, out of the 21 Sell signals, 7 have gone down substantially and still falling. Four out of the 21 have again given Buy signal and going up.

This statistics is given just for information. It however indicates that the RSI Filter based system is probably better and may be further refined. Your valuable inputs will be helpful.

Regards

 

[kkseal]

Hi Anant,

Nice to know my favourite indicator doing so well

Wish we had some AI tool to optimize the rules further.

Great work and warm regards

Kalyan.

 

[asnavale]

Hi Kalyan,

Thanks a lot. I think we do not need any AI. There are enough number of intelligent people here in this forum who can help to optimise. I am looking forward to the inputs from them.

Regards

-Anant

 

[karthikmarar]

Hi Ananth

Your new idea is definitely a great improvement on the Mabiuts - HB. The best thing is that it keeps one in the long.short positions during the big moves though in the side ways market it does not prevent the whipsaws.

We can never fully eliminate whipsaws, especially for this system as we are basically trying to catch every undulation in the price. So naturally when the moves are big the waves in the Histogram are big. In a sideways market the waves in the Histograms are small and the fact we are trying to trade these waves makes whipsaws an inherent problem.

Instead of RSI we should try to use the ADX or RAVI or even the VHF, which basically try to indentify the trendiness of the stock. Do give some thought to it.

warm regards

Karthik

 

[anjanr]

Hi Ananth

Your new idea is definitely a great improvement on the Mabiuts - HB. The best thing is that it keeps one in the long.short positions during the big moves though in the side ways market it does not prevent the whipsaws.

We can never fully eliminate whipsaws, especially for this system as we are basically trying to catch every undulation in the price. So naturally when the moves are big the waves in the Histogram are big. In a sideways market the waves in the Histograms are small and the fact we are trying to trade these waves makes whipsaws an inherent problem.

Instead of RSI we should try to use the ADX or RAVI or even the VHF, which basically try to indentify the trendiness of the stock. Do give some thought to it.

warm regards

Karthik

Probably R2 also

 

[karthikmarar]

Re: Experiments in Technical Analysis - Trading the MACD

Hi Friends

Those who have been following the Trading the MACD series may be a bit disappointed by irregular posts. Unfortunately lack of time and other commitments are keeping me away from this great forum. However I do plan to complete it by this month end after which I plan a brief sabbatical from the forum.

So let us continue with our discussion on Trading the MACD. Earlier we we discussed the MACD Histogram.

Next we will see how to use the Histogram with other signals to get good entries.

Let us look at the clues that can be got from the Histogram that will aid our trades. Histograms are very useful for looking at divergences. We can also use the histogram to judge the strength of the impending move. For example the zero line cross over signals are much more effective when the Histogram is positive and rising.

Also entries when the histogram turns positive (zero line cross over) when the weekly MACD is positive normally result in a good trade.

In the same way zero line cross over to negative side are more effective when the histogram is also negative and falling. Also the shorting when the histogram is negative and the weekly MACD turns negative. Chart 9 Provides some Examples.

To be continued...

warm regards

Karthik

 

[casoni]

Re: Experiments in Technical Analysis - Trading the MACD

Hi Friends

Those who have been following the Trading the MACD series may be a bit disappointed by irregular posts. Unfortunately lack of time and other commitments are keeping me away from this great forum. However I do plan to complete it by this month end after which I plan a brief sabbatical from the forum.

So let us continue with our discussion on Trading the MACD. Earlier we we discussed the MACD Histogram.

Next we will see how to use the Histogram with other signals to get good entries.

Let us look at the clues that can be got from the Histogram that will aid our trades. Histograms are very useful for looking at divergences. We can also use the histogram to judge the strength of the impending move. For example the zero line cross over signals are much more effective when the Histogram is positive and rising.

Also entries when the histogram turns positive (zero line cross over) when the weekly MACD is positive normally result in a good trade.

In the same way zero line cross over to negative side are more effective when the histogram is also negative and falling. Also the shorting when the histogram is negative and the weekly MACD turns negative. Chart 9 Provides some Examples.

To be continued...

warm regards

Karthik

hello sir , as usual.... your work is great...waiting forafl with weekly histogram..& pls add exloration in new afl....thanks ..

 

[uasish]

Hi,
This thread on MACD histograms & the painfull method of reworking until deried result achieved, has actually makes me proud to be associated with serious traders.Following is my 2bit code for MACD in Metastock.
.........................8......................................
a:= TSF(C,3)+TSF(C,5)+TSF(C,8)+TSF(C,13)+TSF(C,17)+TSF(C,26);
b:= TSF(C,8)+TSF(C,13)+TSF(C,26)+TSF(C,35)+TSF(C,50)+TSF(C,56);
mova:= TSF(a,3);
movb:=TSF(b,26);
diff:= a + mova;
diff1:= b + movb;
m:= diff - diff1;
m1:= TSF(m,5)*.5;
If(Ref(m1,-1)< m1,Ref(m1,-1),If(Ref(m1,-1) > m1,m,0))
...................................8.....................................
This is to be viewed as line ,not as histogram for better understanding,all suggestion & comments invited.
Asish

 

[karthikmarar]

Hi,
This thread on MACD histograms & the painfull method of reworking until deried result achieved, has actually makes me proud to be associated with serious traders.Asish

Hi Asish

I do apologize for my inability to put across my ideas clearly. Maybe the fault lies in my poor knowledge of the english language. I wish to make it clear that this thread is not on MACD Histogram tough it is a part of the disscussions.

Here some not so serious traders are trying to share their experiments in Technical Analysis. Also the series on MACD is on how to trade the MACD better and not on reworking the MACD. There has been no attempt on a reworking to get the desired results. All formulas are the conventional , accepted formulas. My poor understanding of english and pathetic way of experssing things may be the reason for your misunderstanding. Or is it my poor understanding of the MACD itself, I wonder.

Copying some code and posting in a forum is very easy. The trouble lies in explaining the indicators working and how to trade that particular Indiator. And explaining it to the newbie is even more difficult.

I wish that you were kind enough to enlighten us on how the MACD code posted by you is better than the conventional one and also how to trade it.
Unfortunately we did not have that previlage from a serious trader.

Anyway find enclosed a chart with conventional MACD and your MACD. Again apologies for my impertinence in putting it as a Histogram in Amibroker.

warm regards

Karthik