## Computerized Trading: Maximizing Day Trading and Overnight ProfitsComplete with explanatory charts, diagrams, and checklists, a detailed discussion of the use of computerized trading systems draws on the expertise of twenty expert traders, and gives step-by-step advice on strategies and reliable data to both beginning and experienced investors. |

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Results 1-3 of 27

Page 32

TABLE 3.1 INDICATOR CLASSIFICATION Trending Non- Trending McClellan

oscillator RSI Directional movement index

crossover Positive volume index SK-SD trading range. Conversely, the security

becomes oversold when it nears the lower end of its trading range. Indicators that

work well in trending environments are generally those that tend to remain

positive as long as the security continues to rise or those that remain negative as

long as the ...

TABLE 3.1 INDICATOR CLASSIFICATION Trending Non- Trending McClellan

oscillator RSI Directional movement index

**Stochastic**MACD Moving averagecrossover Positive volume index SK-SD trading range. Conversely, the security

becomes oversold when it nears the lower end of its trading range. Indicators that

work well in trending environments are generally those that tend to remain

positive as long as the security continues to rise or those that remain negative as

long as the ...

Page 274

Lane's

is: S(p) = (C — Lp)/(Hp — Lp) X 100 where S(p) is the

> l) C is the closing price at the current time Lp is the lowest low over p prior

periods (between now t, and t — p + 1) There are many ways in which to use

stochastics, and.

Lane's

**Stochastic**As an example of this, consider a popular indicator, Lane's**Stochastic**. (Note: Conrrary to its use in mathematics, the “**stochastic**” in Lane's**Stochastic**has nothing to do with random numbers.) The formula for a**stochastic**is: S(p) = (C — Lp)/(Hp — Lp) X 100 where S(p) is the

**stochastic**with period p (p> l) C is the closing price at the current time Lp is the lowest low over p prior

periods (between now t, and t — p + 1) There are many ways in which to use

stochastics, and.

Page 277

Compute the expected value of the change in the S&P 500 over the next five

days as: " '“ _ max(O,1—k,><|x,—c“|) Zg.,.<m... E(X X )_ '=1 F] ' max(O,1—k2X|x2

—c2i|) " ' iimin max(O, 1—k,x|x,—c,,|) M F] max(O, l—k2><|x2—c2i|) where xl is

the 5-day

the 58(1) 500 over the next five days ch is the center of the i-th bin of the 5-day

expected value ...

Compute the expected value of the change in the S&P 500 over the next five

days as: " '“ _ max(O,1—k,><|x,—c“|) Zg.,.<m... E(X X )_ '=1 F] ' max(O,1—k2X|x2

—c2i|) " ' iimin max(O, 1—k,x|x,—c,,|) M F] max(O, l—k2><|x2—c2i|) where xl is

the 5-day

**stochastic**x2 is the 14-day**stochastic**E(x',x2) is the expected change inthe 58(1) 500 over the next five days ch is the center of the i-th bin of the 5-day

**stochastic**czi is the center of the j-th bin of the 14-day**stochastic**eibg theexpected value ...

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### Contents

PART l | 1 |

Popular Trading Indicators | 13 |

Combining Trend Analysis with Indicator Readings | 30 |

Copyright | |

22 other sections not shown

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