Traderji.com - Discussion forum for Stocks Commodities & Forex


Day Ranges to choose for indicators

Discuss Day Ranges to choose for indicators at the Technical Analysis within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Hi to all, I have started learning TA. I had a few queries which i ...


Go Back   Traderji.com - Discussion forum for Stocks Commodities & Forex > METHODS & STRATEGIES > Technical Analysis

Technical Analysis Discussion of all the principles involved in technical analysis.


Reply
 
Thread Tools
  #1  
Old 17th March 2006, 04:55 PM
Member
 
Join Date: Feb 2006
Posts: 355
Thanks: 0
Thanked 4 Times in 4 Posts
rahulg77 is on a distinguished road
Default Day Ranges to choose for indicators

Hi to all,

I have started learning TA. I had a few queries which i hope to be answered here by so many senior learned members of the forum.

1. When we talk abt 15/20/50 day simple moving averages for a weekly chart we will have 15/20/50 week average. Right. Now my question is in a 20 day weekly simple moving average do they take the closing prices of every week(mostly fridays) and divide the last 20 weeks closing price by 20 or they take closing price of every day of the week and divide it by 5 days and come with every weeks average and then find 20 weeks average. Sorry i am not able to ask this question in a concise form but i hope u will comrehend.

2. Also when we see different indicators like moving average and cross over moving average. what time period should we look at. Like 20 day moving average. Should we use different time periods for weekly chart and monthly chart. Are certain time periods more suitable to indian stocks or does it depend upon the market volatility.

3. In RSI to find RS we take Average Gain= Total Gains/N and Average Loss= Total Loss/N. In this we take maybe a 14 day period. can we change the period and if yes do we increase the period or reduce and what effect will it have. Difference between First RS and smoothed RS and which one is better to use.

4. finally I would like to know do we need to know the formulas and undertsand the logic behind the formulas or just getting used to the indicators and time periods to do our study is enough.

Regards

Rahul



Reply With Quote
Sponsored Links
  #2  
Old 17th March 2006, 05:41 PM
Member
 
Join Date: Feb 2006
Posts: 1,609
Thanks: 0
Thanked 11 Times in 11 Posts
aca_trader is on a distinguished road
Default Re: Day Ranges to choose for indicators

Quote:
Originally Posted by rahulg77
Hi to all,

I have started learning TA. I had a few queries which i hope to be answered here by so many senior learned members of the forum.

1. When we talk abt 15/20/50 day simple moving averages for a weekly chart we will have 15/20/50 week average. Right. Now my question is in a 20 day weekly simple moving average do they take the closing prices of every week(mostly fridays) and divide the last 20 weeks closing price by 20 or they take closing price of every day of the week and divide it by 5 days and come with every weeks average and then find 20 weeks average. Sorry i am not able to ask this question in a concise form but i hope u will comrehend.

2. Also when we see different indicators like moving average and cross over moving average. what time period should we look at. Like 20 day moving average. Should we use different time periods for weekly chart and monthly chart. Are certain time periods more suitable to indian stocks or does it depend upon the market volatility.

3. In RSI to find RS we take Average Gain= Total Gains/N and Average Loss= Total Loss/N. In this we take maybe a 14 day period. can we change the period and if yes do we increase the period or reduce and what effect will it have. Difference between First RS and smoothed RS and which one is better to use.

4. finally I would like to know do we need to know the formulas and undertsand the logic behind the formulas or just getting used to the indicators and time periods to do our study is enough.

Regards

Rahul
My 2 cents:

1. The close of the week only that is of friday is taken in weekly charts. Like for monthly charts, closing price on the last day of the month is used.

2. Choice of a particular period for a particular stock is stock-dependent. For example, a 20-day MA may be suitable for stock X while 25-day MA may work better for Stock Y. One has to try and find out the most suitable period for every stock. Most of the softwares today are equipped with optimization facility which can provides results as to the suitability of a particular period or a particular indicator for different stocks.

3. The reply to question 2 is applicable to question 3 as well. RSI for a lesser or higher period may be used depending upon the nature of particular stock. So far as RSI and smoothed RSI is concerned, simple RSI will help capturing more moves as compared to smoothed RSI but will at the same time give more whipsaws as well. It's true for all of the momentum indicators.

4. It's one's own judgement as to the depth he wants to go into. Some of the persons may not like using any indicator till they know the logic behind it while some others may find the need to umderstand logic useless. The preferred way is to get used to the indicators and then try to understand the logic behind it.

Best Regards,
--Ashish
Reply With Quote
  #3  
Old 17th March 2006, 11:23 PM
Member
 
Join Date: Feb 2006
Posts: 355
Thanks: 0
Thanked 4 Times in 4 Posts
rahulg77 is on a distinguished road
Default Re: Day Ranges to choose for indicators

hi ashish,

Thank you for your reply. thank you for your brief and concise explanation. So basically to understand the time period we try different time periods and see which one has given correct indicators in the past and we then use the same time frame for the present and future. Would that be correct.

I thought its to do with how volatile the share is. If more volatile we would use a longer time frame and vice versa. Also moving crossover average would vary for daily chart, weekly chart and monthly chart. like for daily chart we would use 20 and 50 days. For weekly 17 and 43. Any particular thing like this.

Please if you could also explain what you meant by "Most of the softwares today are equipped with optimization facility which can provides results as to the suitability of a particular period or a particular indicator for different stocks"

kind regards

Rahul
Reply With Quote
  #4  
Old 19th March 2006, 08:45 PM
Member
 
Join Date: Feb 2006
Posts: 1,609
Thanks: 0
Thanked 11 Times in 11 Posts
aca_trader is on a distinguished road
Default Re: Day Ranges to choose for indicators

Quote:
Originally Posted by rahulg77
hi ashish,

Please if you could also explain what you meant by "Most of the softwares today are equipped with optimization facility which can provides results as to the suitability of a particular period or a particular indicator for different stocks"

kind regards

Rahul
The trading softwares come with inbuilt options which scan the past data with the indicators one want to use. These can be manipulated to see which of the time periods provide best result for a particular stock. For example, One can analyse past data with an RSI of say 9 days and compare the results obtained with RSI of 14 Days and compare the results. This way one can see what particular time period or for that matter even a particular indicator is suitable for the given stock.

Hope, it's clear now.

Best Regards,
Reply With Quote
  #5  
Old 19th March 2006, 11:18 PM
Member
 
Join Date: Feb 2006
Posts: 355
Thanks: 0
Thanked 4 Times in 4 Posts
rahulg77 is on a distinguished road
Default Re: Day Ranges to choose for indicators

Quote:
Originally Posted by aca_trader
The trading softwares come with inbuilt options which scan the past data with the indicators one want to use. These can be manipulated to see which of the time periods provide best result for a particular stock. For example, One can analyse past data with an RSI of say 9 days and compare the results obtained with RSI of 14 Days and compare the results. This way one can see what particular time period or for that matter even a particular indicator is suitable for the given stock.

Hope, it's clear now.

Best Regards,
Yes very very clear. Thank you.

Best Regards
Reply With Quote
  #6  
Old 29th May 2013, 04:05 PM
sudoku1's Avatar
Member
 
Join Date: Oct 2007
Posts: 8,149
Thanks: 4,318
Thanked 11,273 Times in 3,774 Posts
sudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond repute
sudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond repute
Default Re: Day Ranges to choose for indicators

http://www.traderji.com/general-chit...tml#post814101


Reply With Quote
Reply

Bookmarks


Advertise Here


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads for: Day Ranges to choose for indicators
Thread Thread Starter Forum Replies Last Post
Intraday trading ranges for a scrip badri2003 Technical Analysis 5 12th May 2011 10:23 AM
intraday indicators umangchd Introductions 5 9th September 2006 11:32 AM
Alerts for indicators SRJC MetaStock 4 24th February 2006 03:01 PM


All times are GMT +5.5. The time now is 11:54 AM.

Indemnity, Disclaimer & Disclosure Notice:
By visiting Traderji.com you automatically indicate that you agree to our Forum Rules, Indemnity, Disclaimer & Disclosure Notice and General Content Disclaimer Notice and indemnify Traderji.com, its associates and related parties of all claims howsoever resulting from the usage of the forum/site.
Disclaimer: Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. You are recommended to make appropriate enquiries and seek appropriate advise before sending money, incurring any expenses, acting on recommendations or entering into any commitment in relation to any advertisement published here. Traderji.com does not vouch for any claims made by the advertisers of products and services. Traderji.com will not be held liable for any consequences in the event such claims are not honoured by the advertisers. Traderji.com will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of any information by anybody mentioned anywhere on this site.
Disclosure: The information in this forum is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.
All names or products mentioned are trademarks or registered trademarks of their respective owners.
General Content Disclaimer Notice:
In light of our policy of encouraging candid, open exchanges of views and the rapid distribution of information originating from many sources, Traderji.com cannot determine the accuracy or legality of any information that may be uploaded to the forum. Opinions, advice and all other information expressed by participants in discussions are those of the author. You rely on such information at your own risk. You are urged to seek professional advice for specific, individual situations and not rely solely on advice or opinions given in the discussions. Since Traderji.com is an open and free discussion forum, any comments made by members of this forum in their posts reflect their own views and not of the owner or administrator of Traderji.com. Thus the owner/administrator indemnify themselves of all claims whatsoever and will not be liable or responsible for any members comments/views in this forum Traderji.com. Although we constantly delete all irrelevant content and/or SPAM, if you should find any objectionable or offensive posts made by members of this forum which you would like to bring to our notice for removal then please Contact Us.
 


Copyright © www.Traderji.com 2001 - , All rights reserved.

Recommended Websites - www.TradersEdgeIndia.com - www.TradingPicks.com - www.MasterOfTrading.com

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245