Mostly: Classical

[Sexton O Blake]

HA! I wonder if that is a first... posting a link to the previous message..

I was able to pickup at the library today, incidently, "Martin Pring on Market Momentum" -- already have his TA Explained - and thought that was good. A pretty good read on ROC; Stochastics, RSI, ADX (Welles did the latter two) plus a bunch more.

The directional movement and ADX are pretty "complex" formulas - but this book happens to go through it step by step. (If only to confirm all the formulas I have so far).

Will read up -- munch through it -- and reply with some pertinent info. Pring does dish up his own interpretation of ADX and/or DMI.

Two things:
(A) I have already picked this book up a few times today and have read quite a bit - if nothing else, at least I will learn a lot about momentum. One of my tasks shortly will be to start going through stocks with a number of basic indicators and just "looking" how they all playout amongst themselves.

(B) From the book..
The idea of "smoothing" an ROC indicator at least once opens up a whole series of possible variations. These include choosing time spans for specific ROC indicators, picking various time spans for the smoothing, and, of course, deciding whether to smooth once, twice, three times, and so forth. Obviously, the potential combinations are innumerable. I would add, though, that it is wise philosophy to keep things as simple as possible. Most people believe that they will not be successful unless they try out as many possibilities and combinations as they can. In the days when calculations were done with pen and paper these possiblities were limited, but in the age of powerful personal computers, it is very easy to toy with a thousand variations looking for the perfection that I guarantee you does not exist. In my view the better approach is the simple and thoughtful one: Spend your time and effort on studing and analysis.

Well we know that Frank doesn't post a chart with lots and lots of indicators. And posted to me here on the couple he looks at. I am still observing. I definitely don't want 4 or 6 indicators if 1/2 of them tell me X and 1/2 tell me Y. I look at Stockcharts - the public ones. Green as I am, looking at some of them - sure they add comments to the main pricing area - but to have so many indicators - used in such a time frame - seems like noise.

Here is one public chart set called (AHEM - no relation to CD) Ride the Precious Metals Bull! Link to charts HERE ... ANO (Anooraq) is charted on Page 5...

OT: Anyone out there do much with GANN charts? Read something on it elsewhere.

Anyahoo, I agree though - specifically with "study and analyse".

B