oscillator from MBA Thesis - Page 3

jjk2 · #21 (**permalink**) 11-13-2007, 10:20 PM

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lonelyfx · #22 (**permalink**) 11-13-2007, 11:00 PM

Quote:

Originally Posted by jjk2

exactly...im having serious doubts now. but im using it with other stuff for confirmation and its not too bad.

can u share with us how are u using other stuff for confirmation? thanks

jjk2 · #23 (**permalink**) 11-14-2007, 12:17 AM

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traderandreas · #24 (**permalink**) 11-14-2007, 03:10 AM

Hi,

Thanks for everyones input into this thread. I think there is potential with this indicator. I have tried it on 1 minute charts and when the histogram gets very low and then rises it does appear to offer some buying potential.

I have a suggestion to possibly improve this indicator by adding a fisher transform to it http://media.wiley.com/product_data/...0471463078.pdf.

Does anyone know how to do this?

thanks,
Trader

wookey · #25 (**permalink**) 11-14-2007, 03:45 AM

Quote:

Originally Posted by omelette

Has anyone actually taken the time to examine this formula?

It is adding MACD (typical value = 0.0020) to RSI (typical value 50.0) - as you can probably see, MACD influence is insignificant and can be disregard completely! If someone actually received a Masters based on this, then all I can wonder is what is the educational system coming to...

btw the 'actual' formula also includes raising the value to a power, which results in infinities everywhere, so I really think you are flogging a head horse here...

This indicator was not made and tested in forex market. I think it was made for platform where there is no non-integer values. For instance value of cable would be 20770. Then MACD would have been significant.
But anyway, I don't see any mathematical point of adding MACD to RSI. It is like summing absolute and relative speed. Also I don't understand why the author sums an oscillator which moves around 0 and oscillator which moves around 50, I would deduct from RSI value 50.
I think something wrong with the formula, but the idea of mathematical filter is worth researching.

Wookey

Craig · #26 (**permalink**) 11-14-2007, 07:46 AM

May I politely suggest this may be a joke. Arbitrarily adding some oscillators together is just going to give you...another oscillator.

jjk2 · #27 (**permalink**) 11-14-2007, 08:32 AM

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jjk2 · #28 (**permalink**) 11-14-2007, 08:38 AM

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derikb · #29 (**permalink**) 11-14-2007, 03:17 PM

You may consider PPO instead of MACD. Percent Price occilator. It is a MACD but in percent terms. So it doesn't matter if it is forex, oil, etc. Do a search for it, it may help.

jjk2 · #30 (**permalink**) 11-15-2007, 12:02 AM

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