Experiments in Technical Analysis

hi kalyan
Have we not made the markets like a IT software hub.we are not trading/investing--- it is like doing advanced math's paper??

Jatayoo

Good Trading/Investing need a lot of homework. It is not acting on TIPs.
And with some simple tools and with the knowledge of how to use them it will be quite rewarding.

Again one can redicule these tools and learn the hard way by losing a lot of money.

If you know some way Trading/Investing without any tools do share it here.

Hope to see something constructive and informative from you, at least once.

regards

Karthik

Hello Kalyan, I am no expert in metastock coding. I've been using metastock only for 4 months and I'm a baby in technical analysis too, leave alone metastock coding.
Whenever you see "if" function used, it goes like If("condition", "value of condition is true", "value of condition is false")
It is the " , " which seperates the equations.

Using this basic knowledge, you can structure the formula If(LinearReg(C,13)>PREV,If(LinearReg(C,13)-(ATR(13)*2.5)>PREV,
LinearReg(C,13)-(ATR(13)*2.5),PREV),LinearReg(C,13)); in the following way.

First IF:
Condition : LinearReg(C,13)>PREV

Value if true: If(LinearReg(C,13)-(ATR(13)*2.5)>PREV,
LinearReg(C,13)-(ATR(13)*2.5),PREV)

Value if false: LinearReg(C,13)

Now notice that the "value of main condition is true" also has an if condition attached with it. So if we break it down further using the same process.
If the first "if" function gives a true value, it could again lead to 2 results given another condition, as stated below:
Condition : LinearReg(C,13)-(ATR(13)*2.5)>PREV
Value if 2nd if is true : LinearReg(C,13)-(ATR(13)*2.5)
Value if 2nd if is false: PREV

This is a condition where A can lead to B or C. If it leads to B, then B can lead to D or E. I hope you understand the logic. Beyond this, it is only the indicator function (as in data array, periods etc for linear regression and atr) which should be taken into account.

Regarding the "Prev" function, I have come across that function in many metastock formulas but unfortunately, I do not have a proper explanation for it, since I have never used that in my formulas.I think "prev" function means the value generated in the previous bar(say if yesterdays indicator "A" gave a value of 50, and u have used a prev function in indicator A, if the prev function is triggered, I think it returns a value of 50 today also).
Just to be sure, I shall provide you with a detailed explanation of the function as soon as I get hold of it.

Good luck trading.
Oxymoron

English explanation:
----->If the 13 day linear regression indicator value is greater than previous, check if the diffference between the 13day linear regression and 2.5* 13day average true range is greater than yesterday's value (or value of the previous bar).
*** If it is true, return the current indicator value as "the difference between the 13day linear regression indicator and 2.5* 13day average true range"
***If it is false, return the current indicator value same as yesterday's value

-----> If the 13 day linear regression indicator value is lesser than yesterday's value, return the indicator value same as yesterday's indicator value.

"Prev" calculates the value of the indicator on the previous bar.

"LinearReg(C,13)>PREV" means that 13-day Linear Regression (calculated on close) of today is greater than Linear Regression (calculated on close) of yesterday.

Best Regards,
--Ashish
http://tradingtalks.blogspot.com

Hi Rahul

Glad to know that you are finding the discussion interesting. Dear..dear Me.. A professor !! Oh, No…. Just a control system engineer..

By the way watching too many TV mega serials not good …

Regards

Karthik

In this age, the one who has info wins.

If you have prior movt of large movements - thats the best information.
Since most ppl don't - TA is the second best info you can have.

PS: who says IT software hubs require doing advancd maths paper?

Thanks Oxy for the detailed explanation. You've made things crystal clear!

Regards,
Kalyan.

That's what i had guessed but i wasn't sure. You've cleared all my doubt. Thanks a ton.

For Amibroker (again i hazard a guess!) the equivalent function would probably be REF and the 2 equivalent conditions would be

1) LinearReg(C,13) > Ref(LinearReg(C,13),-1)
2) LinearReg(C,13) - (ATR(13)*2.5) > Ref(LinearReg(C,13) - (ATR(13)*2.5),-1)

Please correct me if i am wrong as i'm an absolute rooky when it comes to TA s/w & FLs.

Regards,
Kalyan.

Dear Karthik
I know that preparation and tools help.I too use indicators for a sense of balance.But are we not Dissecting things to the realms of "uncertanity"--TO THE LAST TICK ALMOST.
If this be so ,(and this must be so because i have read of 'bullish declines' on the board),then it is like trying to catch the last breath of a dieing man OR the first heartbeat of a child.
IS NOT The naked eye focused on the intraday charts with two indicators that suit your comprehension best,or which have given you the best results,is perhaps more reliable and sure.
.....Lets be true and answer the question that how much of help have these mathematical tools helped us---these are also statistical based,are they not???
I Too have tried to find a tool that would tell me THE FUTURE AND I FOUND NONE,NONE,NONE.
.....................IT TAKES COURAGE TO ACCEPT THE LIMITATIONS OF A SYSTEM OR ELSE YOU END UP DISILLUSIONED.
........................THAT'S WHY I DONT TRADE INTRADAY NOW BECAUSE MONEY DOES'NT GROW ON TREES.
.......................................DONT MIND IT.CHEERS.