This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I’ve been using a new indicator, for the last couple of days, that I find quite helpful. It appears to work better on time based charts, but I’m hoping I can use it on the change charts. We’ll see.
Investopedia has two links (1, 2) that help explain it. Its by the same guy who came up with R.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
December 12th, 2007 at 8:42 pm
It’s by Alexander Elder, who also came up with the Triple Screen system. I’m going to try it out, too. What’s one more method to a schitzo-trader like me?
December 12th, 2007 at 9:29 pm
LOL…i ran across it several months ago, and didn’t see much to it…this time i plugged in a 10 period weighted moving average instead of the standard settings, and kind of like it
December 12th, 2007 at 11:58 pm
I don’t know about this one… it seems to just be saying whether the high and low are above or below the MA. I can see that just looking at the candles, right?
December 13th, 2007 at 9:26 am
richard: i’ve only looked for a few days, but it seems (to me) to work better at identifying momentum, or a change in momentum, better than other indicators that i’ve watched…its laid out in the article (with the exception of how i set mine up with the 10-period weighted moving average and settings to reflect that), but a new low in momentum on the bear power, followed by a pullback with a divergence on the bull power, definitely seems to identify that a short is probably in order
check out investor rt’s definition of how the indicator is calculated -http://www.linnsoft.com/tour/techind/bull.htm
so it also takes into account the high and low, the MA, and its relation to the current price…i would be interested on your thoughts after u see the calculation…they may be the same as before, but i would like your input
December 13th, 2007 at 9:33 am
I had read that article yesterday. If you are using the elder method, then bull power is just (high - MA) and bear power is just (low - MA). Looking at the chart you posted, that looked like what you are using. I can eyeball that easily enough just from the candles. That other method with the average of three values might be a different story. Not sure.
December 13th, 2007 at 9:39 am
actually, ur right…i am using the elder method, so it would be the HI-MA