Wednesday, October 03, 2007

A new TD Combo based oscillator

I had an idea this afternoon about a new oscillator and just finished putting it together. It is based on Tom DeMark's TD Combo countdown rules. I plan on doing some backtesting in the near future but for now I'll show it using a 40 day period. It seems to act like the RSI indicator, where it stays above 50 in bull markets and often sinks below it, without getting back to the highs, in bear markets. I have plenty of work to do on this.

2 comments:

Anonymous said...

How timely are the oscillator signals with respect to the actual time-series. i.e. lag at different frequencies?

Paul Stiles said...

I don't know. I'm relatively new to systems development, but it sounds like a worthwhile calculation. Thanks for the suggestion.