The Geek Forum

[Capitalist]

The research project on TA conditions is still going on in the Lab. I have created a tool on Excel for quick analysis of price behaviors under a specific set of TA conditions and I have been using it to investigate moving averages and Williams Percentage Range. I wanted to look at a trend following indicator and a contrarian indicator, so I chose the simplest ones.

After several fits and starts, I'm figuring out how to use the "Conditional Analysis Testing" Scan (or CAT Scan) to provide some interesting results. I've gotten to the point in the research project now where I'll be investigating some specific questions that came up while I was trying to figure out how to use the new tool correctly. Here's a list.

1. From pg. 14: Why are OB/OS periods more reduced in duration for shorter time-frame charts?

2. From pg. 15: Is the relative position of two %R indicators correlated to total price change during the period?

3. From pg. 15: Do moving averages act as support and resistance?

4. From pg. 19: Do price bar penetrations of the moving average intensify moves in the same direction as the penetration?

5. From pg. 19: Does total price change actually move inversely to the direction of a moving average crossover?

6. From pg. 21: How can the maximum rise be less positive while the total change is more positive for OS periods and the maximum decline be less negative while the total change is more negative for OB periods?

The entire project can be seen by opening up the MS Word document called "Current Research Notes" at the bottom of the Market Laboratory page on the site.

http://www.market-geeks.com/lab.php

Cap