:: actio-et-reactio ::
amg's market charts and blather
SMR and Trading Day by Day, Chick Goslin's Intelligent Futures Trading (IFT) methods
When I first heard his name, I couldn't help but think of a family of swans, the chicks trialing in the wake. The cuddly image was shattered by the picture of him at his site: a burly smiling ex-Marine crouched down next to his shaggy dog friend. He has acquired a number of faithful adherents on the web, particularly at the trade2win boards, who as of this writing have over 22 pages of reviewing, demystifying, and at this point, documenting their use of the method.
Goslin's IFT might sound complicated, but striped to its essentials, it is a straightforward method with a very nice number-weighting of the long, medium, and short term signals the system generates. I haven't backtested the results, but each piece of the system is simple and will be recognized by most technicians and market hounds.
The 3-point System is outlined at SMR in this text file. It reads a bit obtuse and mysterious as it is sprinkled with his own nomenclature of the elements. Can you fault him? We all do that with our methods! However, the code can be cracked without resorting to buying the book. My intent is to present a TA tinker with enough to create the template on their own and find out if their interest is peaked enough to buy the book and explore in depth the methods and nuances Chick has developed. The book reviews indicate there is value.
The basic indicators:
- Trend Line is a 49 SMA of price.
- DL is the "Dotted Line" Intermediate Term indicator, which is a 16ma of the 3-10 MACD.
- SL is the "Solid Line", ie, Short Term indicator, which is the 3-10 MACD.
An imaginative leap is taken for position trading. Chick assigns each of the three main components a value of +1, 0, or -1 depending if the indicator is moving up, sideways, or down as follows:
- Long Term49/50 sma (1 pt), also called the Direction Line
- Intermediate16ma of 3-10 MACD, also called the Confirming Line (+/- .5 trend, +/- .5 when above/below zero), and can lag 5 days
- Short Term3-10 MACD value (1 pt), aka the Timing Line
One then counts only the positive contributions when the trend is up, or only the negative values when down. +/- 2 is considered bullish or bearish, and values between +/- 1.5 are considered neutral (ie, no position).
Finally, to eliminate lag and anticipate a change in the Position Indicator, the past values of both the 49 sma and the 16 ma on the 3-10 MACD are reviewed to see if a lower or higher value is being "dropped" off by the ma calculation.
All things considered, a very sensible approach.
|
moon phases |
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
blather: nonsensical talk.
At times my analysis log, at times sharing what I've learned. Always my own work and views.
Content: amg
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