STRAT
18-09-2009, 10:09 AM
Many Indicators out there today are derived from others and their authors will have us believe they are improvements on the original. Is this really so?
Twiggs Money Flow is a good example.
An enhancement or derivative of the Chaikin Money Flow which in turn came from Accumulation Distribution which was derived from OBV.
I certainly haven’t missed an obvious sign, that being Phaedrus would appear to have a preference for the original.
I have found while comparing these some alarming divergences in the signals they give off.
One would expect an enhancement of any product to do the same job but in a refined manner. You wouldn’t be happy buying a car only to find when you get it home R means Drive and D means reverse. Surely the same should apply here. Am I over simplifying this or missing the point altogether. Thoughts and comments would be much appreciated.
Will post some examples later today when I get time
Twiggs Money Flow is a good example.
An enhancement or derivative of the Chaikin Money Flow which in turn came from Accumulation Distribution which was derived from OBV.
I certainly haven’t missed an obvious sign, that being Phaedrus would appear to have a preference for the original.
I have found while comparing these some alarming divergences in the signals they give off.
One would expect an enhancement of any product to do the same job but in a refined manner. You wouldn’t be happy buying a car only to find when you get it home R means Drive and D means reverse. Surely the same should apply here. Am I over simplifying this or missing the point altogether. Thoughts and comments would be much appreciated.
Will post some examples later today when I get time