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Re: DowDeva post# 40165

Thursday, 07/30/2009 8:35:45 AM

Thursday, July 30, 2009 8:35:45 AM

Post# of 51810
Deva, why not


just work with the underlying (DJ US financial index)? Because values are a 1-1 map there is no new information that SKF can give you apart from ETF manager error in meeting stated goals.

There is another problem that can arise with leveraged data. This has to do with greater variation in values over the same time frames, which can make the oscillator data look more flat or more peaked than the underlying would for the same settings.

In any event, working with oscillators is pretty tricky. Different oscillators may look different but are all transformations of the same data. They are designed to look helpful. The keyword is "look". But then again, I do believe you know all this.

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