November 2019
Beginner
394 pages
10h 31m
English
In Chapter 2, Deciphering the Markets with Technical Analysis, we looked at generating trading signals with predetermined parameters. What we mean by that is we decided beforehand to use, say, 20 days moving average, or the number of time periods to use, or the smoothing constants to use, and these remained constant throughout the entire period of our analysis. These signals have the benefit of being simple, but suffer from the disadvantage of performing differently as the volatility of the trading instrument changed over the course of time.
Then we also looked at signals such as Bollinger Bands and standard deviation, which adjusted for trading instrument volatility, that ...