VIDYA,StochRSI and CMO variations

[darth trader]

I've started looking at the systems mentioned above:

VIDYA - Variable index Dynamic Average
STOCHRSI - Stochastic RSI
CMO Chande Momentum Oscillator including filtered, averaged and volatility driven variations

they are all devised by Chande and Kroll and mentioned among others (eg. r-squared and slope) in the book
The New Technical Trader.

Has anyone any experience of these indicators that they would like to share?

Darth.

 

[darth trader]

Uncle and other metastock users:

vidya seems to be the variable moving average in metastock;
stochrsi is quite useful;
DMI (dynamic momentum index) is volatility driven RSI with variable periods;
IMI (intraday momentum index) is useful for verifying candle patterns.

Very interesting stuff!
Darth.

 

[esiotrot]

Hi Darth
I'm a newbie to this site and BBs , very interesting too!
Basically I've been lurking but couldn't resist replying to question on CMO.
I use Metastock 7 and use CMO plus RSI plus MACD and Stochastics (Sometimes) and trade the stocks such as RTR, STAN, EGS which I term"Bollinger Traders". These stocks and others often show a repeatable pattern swinging from one BB to the other.
I use the Vanilla CMO which comes with Metastock using 20 day indicator and then waiting for it to cross the 9 day ma of the indicator after being oversold or overbought. Check out STAN at the moment.
I find that CMO generally leads MACD crossovers by 2 or 3 days.
Comments?
VIDYA is a new one on me, but I'll look into it.

regards

 

[ChartMan]

Welcome aboard Esiotrot! Good first contribution!Hope we see more postings from you.

 

[darth trader]

Peter,

thanks for your reply on CMO, it's very interesting and good to here from a metastock user.

I have recently traded EGS too before it's sad demise falling through that long term support level.

I'm also a fan of bollinger bands but somewhat frustrated at being unable to program a good exploration for them. My last attempt used price channels instead but I have had difficulty quantifying the volatility aspect (tightening/widening) so far.

I think that VIDYA (Variable moving averages) could be worthwhile too.

I must say that I was very impressed by the ideas in Chande's book at it has halped me to become more creative.

Darth.

 

[esiotrot]

After reading my post I realise I should point out that the big drop recently caught me out when I was long on EGS. I got into the trade as a result of a CMO signal on 2nd March 2001 but was then bushwacked by events as I wasn't quick enough to get out when footsie first regained then fell through 6000 once more.

At this moment I'm in wait and see mode i.e. all cash.

As for Bollingers - they work OK if the pattern is one of "swing and swing" but the difficulty is when the price "Clings and swings". I then use trendlines, support and resistance etc.

Metastock has an expert commentary on Volatility and Bollinger Bands which basically compares current width with the ma of the width. Unfortunately I have not come up with a use for this!

Have you checked out www.guppytraders.com for Metastock formulae? Probably a silly question.

regards

 

[darth trader]

Sorry to hear about EGS.

Yes I agree, guppytraders is an excellent source of examples for coding queries.

 

[Uncle]

Welcome to T2W Esiotrot. Nice to see another Metastock fan. I too use CMO as one of my permenant indicators and find it especially useful when the MA has moved down towards the OB/OS line and then look for the cross over.

Look forward to your future posts

Best wishes, and see your a wise man a present by being liquid.

John

 

[Uncle]

Darth

Equis supply a special add on for BB's called "Bollinger Band Systems" which selects from the data base a small group of stocks likely to reverse the current trend, which might be the answer to your frustration with BB signals.

Dont have any other info, but sales Equis.com will no doubt provide all the info you need.

Trust your making a bob or two this week!!!!

John

 

[darth trader]

Uncle,
thanks for the info I'll take a look at the BB add-in.

I must confess that I'm just practising the theory at the moment and all my money is stashed safely under the mattress waiting for a good bull run.

Too many stocks have fallen too far to make shorting attractive (to me) and I don't trust the current rally to last very long to buy any techs.

I'm trying to make my "system" more time efficient and I'll make a post when I've sussed things out a bit more.

Meanwhile I'll keep trying to win the weekly competition! I reckon that if I can consistently pick a good long and short to a trade on a monday morning then maybe I can be a trader in a year or two...

it's all just a game and good fun.

How are you doing?