ARTICLE SYNOPSIS ...The Relative Strength Ratio-Macd Crossover by Gilbert Raff Here's an indicator to identify positive and negative trading signals for stocks and mutual funds. The heart of the indicator involves applying an oscillator to the relative strength line. Trading signals result from identifying strong relative strength, which is a positive indication, while weak relative strength is considered a negative sign. Here's how to lower the volatility of returns by applying the popular moving average convergence/divergence (MACD). Most stocks and mutual funds are more volatile than the Standard & Poor's 5...
ARTICLE SYNOPSIS ...Time And Indicator Design by Gilbert Raff Can indicators be improved upon by looking at them using different time frames to smooth and combine? STOCKS & COMMODITIES contributor Gilbert Raff proposes yes. Take a look. Here's an aspect of indicator design that increases trading efficiency, a concept that I call time redundancy. In three recent STOCKS & COMMODITIES articles on the KST indicator, author Martin Pring demonstrated the use of an indicator made up of the sum of three different rates of change (ROC) of momentum, each at a different time frame. Based on experience, I would say the suc...
ARTICLE SYNOPSIS ...Trading The Regression Channel by Gilbert Raff Every trader has had the experience of selling a stock or commodity too soon during a rapid price reversal, only to realize in retrospect that this was a consolidation within a trend. Or just the opposite: perhaps the trader watched profits evaporate when the ""consolidation"" became a downhill avalanche. A vast array of methods exists to describe price movement, ranging from trendlines to Fourier analysis. The ideal description of a trend would provide clear recognition of its start, trading range and termination. The ideal tool would permit th...