Experiments in Technical Analysis

[balaa11]

I would like to know if anyone is using MANDESTOCKS NIFTY CD for nifty trading and feedback on that.They claim morethan 1500 points made in 1 lot of nifty in 1 year .We can take a plunge after real experience from someone.

balaa11

 

[gacsekar]

What is this "MANDESTOCKS NIFTY CD" ? can you throw some more light on it Please. Thanks

 

[balaa11]

You may get more info from mandestocks.com

 

[karthikmarar]

Hi Karthik,

Just a query on the SRSI Afl you had posted earlier. If i am not mistaken the code for the Ehler smoothing in the AFL is the following

(C+(2*Ref(C,-1))+(2*Ref(C,-2))+Ref(C,-3))/6

(This has been assigned to a variable 'var' & then value for var is compared to that of the previous day etc.)

Do you think the same smoothing formula can be applied to the Chande Momentum Oscillator &/or Chande's Dynamic Momentum Index (i am more interested in the latter) as both are simillar to the RSI. Out of the two, the DMI even uses the same formula as the RSI (CMO has a slightly different numerator & is unsmoothed) Only the period is made flexible (or Dynamic, as the name suggests).

Would like to know your opinion on this and anything else you might suggest.

Regards,
Kalyan.

Hi kalyan

Definitely the same formula can be applied to CMO. It makes the CMO much smoother and much better to use. It reduces a lot of the jaggedness. But it does introduce a log of atleat one bar if you trade using a signal line.

Enclosing a chart of normal CMO and a smoothed CMO.

Will check the effect of the smoothing on the dynamic momentum Index.

warm regards

Karthik

 

[kkseal]

Hi Karthik,

Thanks a lot (for the umpteenth time & rest assured there'll be more to follow )

Can manage the DMI myself but will await a post on your work on the Stoch IFT.
That would be another interesting piece!

But take your time my friend. No hurry. I know you're terribly busy nowadays.

Warm Regards,
Kalyan.

 

[karthikmarar]

Hi kalyan

Here is the smoothed DMI. Same result. much better to work with. but at least one bar delay. On stochastic IFT , will try during my Weekend.

regards

Karthik

 

[kkseal]

Hi kalyan

Here is the smoothed DMI. Same result. much better to work with. but at least one bar delay. On stochastic IFT , will try during my Weekend.

regards

Karthik

My word, Karthik! That was lightening fast!! Will take some time for me to reach your proficiency with AFLs.

Just one more request Could you please post the DMI for the same Infy chart (same period) that you had used for the SRSI (preferrably with the RSI & SRSI also in place). This would enable better comparison.

And Thanks yet again I don't know if i'll ever be able to return your favours but will certainly try.

Regards,
Kalyan.

 

[karthikmarar]

Hi kalyan

Here the requested chart with RSI,SRSI and smoothed DMI. SRSI seems the winner . What do you say.

Also enclosing a chart on how I look at DMI...

About returning favours, Yes you can. Just keep winning, laugh all the way to the Bank .. and ... Donate a tiny part of the pickings to a genuine orphanage or old age home...

regards

Karthik

 

[uasish]

karthikmarar,

Nice to see dedicated people.Was toying an Idea "Cycle" not the "Hurst or Bookish Convential one's,see Nifty Fut ,reacting on 13th to 15th,(plz refer my post 2days back in Nifty 5000).Why not put a 1/2 cycle Mov Avg & 2 cycle MA ( as periods),& see the effect on Low & High Beta stocks with good liquidity.MACD being not my cup of tea ,thought you can atleast see ,is it worth trying ?

Asish

 

[karthikmarar]

Hi Asish

Nice idea indeed. But can you please direct me to the post you are refering to?

Cycles... mm.. the only cycle I am comfotable with is the two wheeled one which I was riding to school...

I did not make much progress in my study of cycles... rather confusing stuff really...Kondrateiff wave, 4 year kichin wave,jugular wave, 28 day wave... phew.. leave alone Hilburt and Ehlers....

Also each stock.. or each sector at least... may show its unique cycle..

I gave up on these stuff as I did not want to give early retirement to my comb... already it has got less work..

regards

Karthik