Actually you made a good point. Eckhardt did write an article warning of problems with indicators that fail the "c-test." Which basically means that if a change in the unit of measure changes an angle or indicator value, that approach will give inconsistent results like when a stock splits. To do the c-test in AB "split" the data. If the indicator or angle is the same both pre and post split, it passes the c-test. If not it fails. If anyone wants a pdf of the article, email me privately. P.S. Linregslope applied directly to a price array fails the c-test. Which doesn't mean that linregslope is worthless BTW.
--- In amibroker@yahoogroups.com, "sebastiandanconia" <[EMAIL PROTECTED]> wrote: > > In one respect, I shot my mouth off before fully understanding that > drawing lines using linregslope isn't the same as simply drawing lines > "freehand," whether it's with pencil and paper or with computer > graphics. Sincere apologies.:) > > There's still the issue of how important the angle really is. Even if > using linregslope yields angles that are consistent without regard to > scaling, that's interesting from a trig standpoint but from a trading > standpoint, so what? > > > Luck, > > Sebastian > > > ---- In amibroker@yahoogroups.com, "Fred" <ftonetti@> wrote: > > > > Yes ... > > > > The angle is a relation of rise ( Price ) over run ( Time ) > > > > When rise is measured in terms of percent or log10 of price there > > will be no change in the angle after a split ... Percentage or log10 > > based moves in price are really the only reasonable way to measure > > them any way ... or chart them for that matter ... this is for the > > same reason that CAR is calculated the way it is i.e Total Gain ^ ( > > 1 / Number of Years ) as opposed to something that typically gets > > referred to as ANN and has a formula like Total Gain / Number of > > Years ... The latter is at least imho a semi meaningless statistic. > > > > --- In amibroker@yahoogroups.com, "quanttrader714" > > <quanttrader714@> wrote: > > > > > > Would you agree there's a problem if the slope changes when the > > stock > > > splits? > > > > > > --- In amibroker@yahoogroups.com, "Joe Landry" <jelandry@> wrote: > > > > > > > > Don't apologize but you're not bursting my bubble, yet! ( but I'm > > > open to > > > > having it deflated). > > > > I've heard this knock off before and let's put it to bed if we > > can. > > > > > > > > Did you try zooming the chart? Both x and y? Surely the slope > > of the > > > > plotted line > > > > changes as you move both the x, abscissa and the ordinate, price, > > > but the > > > > calculated > > > > values of the slope from using linregslope does not. I think of > > the > > > slope > > > > as representative of the rate of change of > > > > that price (or other) array. I don't know what Eckhardt said or > > in > > > what > > > > context he said it. Maybe > > > > he was talking about using pencil and paper. There the scaling on > > > the chart > > > > would make a difference. > > > > > > > > Also, you have to ask yourself, why would Tomasz have coded a > > > linregslope > > > > function, or Dimitris Tsokakis and others > > > > used it so frequently in their work on the forum? In my > > collection > > > alone of > > > > valued AFL clips I get 200 hits by many different > > > > users of this board. > > > > > > > > Best regards > > > > JOE > > > > > > > > > > > > ----- Original Message ----- > > > > From: "sebastiandanconia" <sebastiandanconia@> > > > > To: <amibroker@yahoogroups.com> > > > > Sent: Thursday, August 24, 2006 9:31 AM > > > > Subject: [amibroker] Re: Never Took Trigonometry > > > > > > > > > > > > >I apologize for bursting your bubble, but angles are not going > > to be a > > > > > consistent measure. If the scale of the chart changes so does > > the > > > > > angle, even if the price data and timeframe are precisely the > > same. > > > > > > > > > > Trendlines that connect highs/lows, however, are consistent > > regardless > > > > > of scale. In "The New Market Wizards" mathmatician William > > Eckhardt > > > > > explains why methods based on angles are fallacious, but > > methods based > > > > > on trendlines are more legitimate. > > > > > > > > > > > > > > > Luck, > > > > > > > > > > Sebastian > > > > > > > > > > --- In amibroker@yahoogroups.com, "Charles J. Dudek" <trader@> > > wrote: > > > > >> > > > > >> I don't know how to convert a slope value (LinRegSlope) to an > > angle. > > > > >> I took a line from the Woodie's CCI script and converted it, > > but I > > > > >> don't think it's right. > > > > >> > > > > >> PI = atan(1.00) * 4; > > > > >> angle = round(180 * acos(1/LinRegSlope(C,sp)) / PI); > > > > >> > > > > >> Chuck Dudek > > > > >> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > Please note that this group is for discussion between users > > only. > > > > > > > > > > To get support from AmiBroker please send an e-mail directly to > > > > > SUPPORT {at} amibroker.com > > > > > > > > > > For other support material please check also: > > > > > http://www.amibroker.com/support.html > > > > > > > > > > > > > > > Yahoo! Groups Links > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > Please note that this group is for discussion between users only. 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