Registered: Jul 2010
08-06-12 04:40 AM
I can't tell if your preaching or asking questions?
Quote from RangeTrader:
I really don't care too much for most 1st derivative indicators. RSI, MACD, Stochastics, etc... MACD is actually a 1st and 2nd derivative indicator.
1st derivative indicators are very lagging generally.
2nd derivative indicators are low lag and excellent for confirmation.
3rd derivative indicators are generally price leading and very useful... Great for calculating divergences!!!
Nothing useful beyond 3rd derivative. Perhaps 4th/3rd derivative crossovers are useful. Never checked.
It was a year and a half ago when I coded my first 3rd derivative indicators. Who else here knows how to create a 3rd derivative indicator and why it's so nice? 3rd derivative indicators are so much fun... 75%+ of the time it's like knowing the future before it happens...
The ultimate is the non derivative though. Price itself as an indicator.