| TreeShaker |
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Gold User, Member, Platinum User, TeleChart
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| Sunday, March 13, 2005 |
| Thursday, April 19, 2007 11:01:36 PM |
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Thanks for the quick reply Craig. The light has just come on. Thanks again.
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You say we don't need to know how the formula works for the PCF, how am I to know which PCF I want to use? 1 yr, 6 mo., or 3 mo.s? What will I see different? I'm looking at 6 mo.s of bars at zoom 4, what changes? Also if I use different values for price percent change how will that change the results? I don't mind experimenting if I know what to expect.
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Correction to my last post. My apologies to Craig. It was his 12/27/05 post that I was referring to. I don't where Doug came from.
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That's not how I interpreted his statements. I think he meant to study the chart until you recognize patterns in the way the indicator behaves with respect to price. I don't think any of his statements implied assuming the stock won't change personality. It seems reasonable to assume (I'm new at this, and only paper trading, so far) that any given stocks personality will have the following two facets: Personality associated with 1)market cap, # outstanding shares, price, industry, sector, etc. 2)behavior of the price when viewed over time on a chart. For example, I'd guess that, as MSFT changes personality over, say, a 2 year period, an indicator that worked in the late 80's might no longer work today.
Now, when you say, 'looks good wearing that parameter', do you just mean that both price and indicator are bullish today, or do you mean it looks good because the indicator consistently exhibits recognizable patterns that have, throughout its history, predicted certain price behavior? I think PW meant the latter; I think I liked this thread; and I hope I figure this stuff out. :)[/quote]
I think any stock will change its personality over time, but when you're considering "trading" a stock I don't think you are going to go back much more than 1 to 2 yrs, if that far. How a stock wears the parameters means the latter, did it give you meaningful data in the recent past, and if so, keep them. It seems that Doug's comment confirmed what I was thinking. It also appears that, although I may have said it different than you would have, that we are also thinking the same thing.
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Let me see if I understand this correctly. It seems to me that you try different parameters on a stock and see how the stock looks in it. If it looks good wearing that parameter, you assume that the character of the stock will remain the same and continue to use the parameters to get future readings.
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