Excellent Indicators to daytrade the ER

Discussion in 'Technical Analysis' started by Cazza La Randa, Aug 23, 2006.

  1. This is an example

    You can set all the parameters and time frames as you want

    Avoid to trade in choppy hours

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  2. You know it would help enormously if we could read the fucking chart. That is probably why nobody has responded to your post, plus the fact that it looks like spam. ET allows file sizes up to 120K, and you could JPEG it for optimum readability. Since no body else has asked, what can you tell us about what you are doing? (I'll play straight man for a while.)
  3. saico


    Nothing wrong with the chart pic here.
  4. Thanks for your post and a nice chart. Can you specify what you consider as choppy hours in ER2 market?
  5. 9:30 - 4:15
  6. The MACD is essentially an oscillator version of a dual moving average crossover. Why would this give you any more information than your moving averages already do?

    Also, what is special about using Linear Reg as opposed to a shorter-length EMA or SMA?

    I'm not trying to dog your work, but I just don't see how this system can work profitably on days other than extremely trend days like we had today....

  7. JackR


    Not sure what your adjective(?) means in reference to the noun chart but if you open the attached chart and click on it it will enlarge such that it can be read with ease.

    Compare to the Hyposculator and the Hypenvelope for utility ad ease of use. Efficacy is under review.

  8. secxces


    Interesting Angle. Very clean, and tracks bull and bear markets rather well. I wonder though, in choppy markets, and due to the linear regression, I can only assume you would get beat up pretty bad. However, with your setup, you can adjust risk by simply adjusting your Hi/Lo moving averages. As in Alexander Ehlers Impuse System, which uses macd for confirmation aswell, the setup tracks the speeding up and slowing of a trend. As I said, interesting angle, and simply well thought out.

    EDIT: If I may, a suggestion on your exit, use a second liner reg moving average crossover for a quicker exit. Not very advanced, but it keeps the simplicity there.

    This was rather inappropriate and uneducated comment, wouldn't you agree?

    Quote From


    The interpretation of a Linear Regression indicator is similar to a moving average. However, the Linear Regression indicator has two advantages over moving averages.

    Unlike a moving average, a Linear Regression indicator does not exhibit as much "delay." Since the indicator is "fitting" a line to the data points rather than averaging them, the Linear Regression line is more responsive to price changes.

    The indicator is actually a forecast of the next periods (tomorrow’s) price plotted today. The Forecast Oscillator plots the percentage difference between the forecast price and the actual price. Tushar Chande suggests that when prices are persistently above or below the forecast price, prices can be expected to snap back to more realistic levels. In other words the Linear Regression indicator shows where prices should be trading on a statistical basis. Any excessive deviation from the regression line should be short-lived.

    Essentially Roughtrader, the liner reg is there, instead of a sma/ema/wma etc., simply for the purpose of a smoother and more accurate breakout of the channel. The lin reg obviously moves faster then a moving average, in terms of programming, so in this sense, the author is trying to interpret which way the channel will be going. The smoothing of a lin reg would make it alot easier, aswell as higher accuracy, to spot the breakouts and confirm them. The setup itself identifys when the markets are slowing and speeding, along with direction. The system does seem like it will have a lot of drawdown through false signals.

    This is my 2 cents. Correct or Incorrect? I dont know..lol. But it sounded good. But i see your point.

    - secXces
  9. Later....Zooom!

    Anyway, as I said this is an idea for scalp/daytrade the market every day through some reliable indicators.....nothing more

    Hope it helps
  10. saico


    It does, thanks for your input! Please dont hesitate to post more charts tomo!

    #10     Aug 23, 2006