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• Analyzing indicators with the cells method by David R. Aronson

  ARTICLE SYNOPSIS ...Analyzing indicators with the cells method by David R. Aronson Does a given technical indicator have predictive value or not? This fundamental question must be answered before using it to forecast market trends or as input to trading decisions. An intuitively appealing way to answer this question is what I call the signal event method. The signal event method evaluates the net profit or loss that would have resulted over some period of past data had a trader acted on the buy and sell signals generated by the indicator. Applying the signal event method, the analyst defines rules (i.e., one or ...

AUTHOR: David R. AronsonDATE: MAR 1989