I'm re-reading some sections of Stan's book "Secret's for profiting in Bull and Bear markets"... two points I need guidance on:
1- p.25 Article 3. Do not use 30 week Simple moving average, but the 30 week Weighted moving average. Can't believe I oversaw that most important point. What are you guys using? Any experiments?
2- p.26 Article 5. Don't buy if Mansfield Relataive Strength Indicator is in a downtrend, even if above 0 line. I knew about crossing over the 0 (from neg to pos) was bullish. but had glossed over the first fact. Â By this mesure, do we have to wait for MRS to turn upwards before we enter after a pullback?
To go even furthur, does the calculation for the Mansfield Relative Strength Indicator change? Instead of using the simple MA, we should use the weighted MA?
I see now the SMA is the way to go. Stan describes on two occasions how to calculate the MA, and they are inline with the Simple moving average). The referance to WMA is for "Mansfield Chart" users, so they are aware of the difference.Â
I'm re-reading some sections of Stan's book "Secret's for profiting in Bull and Bear markets"... two points I need guidance on:
1- p.25 Article 3. Do not use 30 week Simple moving average, but the 30 week Weighted moving average. Can't believe I oversaw that most important point. What are you guys using? Any experiments?
2- p.26 Article 5. Don't buy if Mansfield Relataive Strength Indicator is in a downtrend, even if above 0 line. I knew about crossing over the 0 (from neg to pos) was bullish. but had glossed over the first fact. Â By this mesure, do we have to wait for MRS to turn upwards before we enter after a pullback?
To go even furthur, does the calculation for the Mansfield Relative Strength Indicator change? Instead of using the simple MA, we should use the weighted MA?
On point number one, I think malaguti explained it well in the example you referenced. I've experiemented over the years with it personally, and originally thought I needed to use the weighted moving average as that what he was using in the book. But as malaguti explained it was purely because that's what the Mansfield charts service provided at the time. I think I made the switch to the 30 week simple moving average after reading numerous Global Trend Alerts reports in 2012, as I managed to get a trial for a short period when I contacted him with a number of questions back then. The Global Trend Alert was also when I learnt about the additional substages for each stage. i.e A & B, and + and -, which helped me get a much better undertanding of the Stages.
One point 2. If the Mansfield Relative Strength Indicator is in a downtrend, even if above 0 line then don't buy. On this I've found the alternative way of displaying the Mansfield Relative Strength indicator to be invaluable, and is what I display on every chart I post. As the zero line is itself a moving average, so all you have to do is to show the unflattened indicator with the "zero line" displayed as the moving average, which I show in the thread of how to create it here: https://stageanalysis.net/forum/showthread.php?tid=31
As the slope of the "zero line" gives you additional information about the relative performance versus the index. So if the "zero line" is still sloping downwards then I avoid. But if it's flattening or turning up, then and the indicator line moves aboves it and it's most recent high then it's in good shape. Then you just have to make sure all of the other criteria are in line
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
I'm re-reading some sections of Stan's book "Secret's for profiting in Bull and Bear markets"... two points I need guidance on:
1- p.25 Article 3. Do not use 30 week Simple moving average, but the 30 week Weighted moving average. Can't believe I oversaw that most important point. What are you guys using? Any experiments?
2- p.26 Article 5. Don't buy if Mansfield Relataive Strength Indicator is in a downtrend, even if above 0 line. I knew about crossing over the 0 (from neg to pos) was bullish. but had glossed over the first fact. Â By this mesure, do we have to wait for MRS to turn upwards before we enter after a pullback?
To go even furthur, does the calculation for the Mansfield Relative Strength Indicator change? Instead of using the simple MA, we should use the weighted MA?
On point number one, I think malaguti explained it well in the example you referenced. I've experiemented over the years with it personally, and originally thought I needed to use the weighted moving average as that what he was using in the book. But as malaguti explained it was purely because that's what the Mansfield charts service provided at the time. I think I made the switch to the 30 week simple moving average after reading numerous Global Trend Alerts reports in 2012, as I managed to get a trial for a short period when I contacted him with a number of questions back then. The Global Trend Alert was also when I learnt about the additional substages for each stage. i.e A & B, and + and -, which helped me get a much better undertanding of the Stages.
One point 2. If the Mansfield Relative Strength Indicator is in a downtrend, even if above 0 line then don't buy. On this I've found the alternative way of displaying the Mansfield Relative Strength indicator to be invaluable, and is what I display on every chart I post. As the zero line is itself a moving average, so all you have to do is to show the unflattened indicator with the "zero line" displayed as the moving average, which I show in the thread of how to create it here: https://stageanalysis.net/forum/showthread.php?tid=31
As the slope of the "zero line" gives you additional information about the relative performance versus the index. So if the "zero line" is still sloping downwards then I avoid. But if it's flattening or turning up, then and the indicator line moves aboves it and it's most recent high then it's in good shape. Then you just have to make sure all of the other criteria are in line
(2018-07-24, 12:30 AM)malaguti Wrote: ....
I updated it slightly for an earlier stage 3 since your post. and yes, its all about the investor method for me. on a weekly chart, its pretty good. allows for a long hold all the way to the end of a trend, also allows to add to positions on continuations
anyway, as you say many ways to skin a cat
I'll amend it to colour the bars as its probably easier visually
You seem to be comparing 30 (week?) moving averages with trendlines and a few other things. Any reason why you did not do something like the following psuedo code?
IF ((30 week MA rising) AND (close > 30 week MA)) {
  stage = 2
}
ELSE IF ((30 week MA falling) AND (close < 30 week MA)) {
  stage = 2
} ELSE {
  stage = 1/3
}
Or is it 'just because' you thought your way worked better? I assume it would whipsaw less than the code here?
BTW - 'just because' is fine!
Looking at your indicator it appears that you'd do OK following it slavishly?
(This post was last modified: 2018-07-24, 10:45 PM by malaguti.)
RE: Beginners Questions
(2018-07-24, 10:03 PM)pcabc Wrote:
(2018-07-24, 12:30 AM)malaguti Wrote: ....
I updated it slightly for an earlier stage 3 since your post. and yes, its all about the investor method for me. on a weekly chart, its pretty good. allows for a long hold all the way to the end of a trend, also allows to add to positions on continuations
anyway, as you say many ways to skin a cat
I'll amend it to colour the bars as its probably easier visually
You seem to be comparing 30 (week?) moving averages with trendlines and a few other things. Any reason why you did not do something like the following psuedo code?
IF ((30 week MA rising) AND (close > 30 week MA)) {
  stage = 2
}
ELSE IF ((30 week MA falling) AND (close < 30 week MA)) {
  stage = 2
} ELSE {
  stage = 1/3
}
Or is it 'just because' you thought your way worked better? I assume it would whipsaw less than the code here?
BTW - 'just because' is fine!
Looking at your indicator it appears that you'd do OK following it slavishly?
Hi Pcabc, no trend lines. I could have used "slope" i could have used MA > MA[1] i just happened to choose the linear regression as that also signifies turning points. no other reason
if you use close is greater than 30, then you are too quickly going from one stage to another
take the S&P again with a recent rising 30SMA. if you are in a stage 3 when it closes below, you would be in a stage 2 a couple of weeks later, where ive added the text in my chart.Â
the book and method looks to break a "high" an area of some previous resistance. i haven't yet come across in any charting package this concept of a high (almost like a zig zag), so ive used the donchian 20. you can see that the recent donchian break of the 20 again does seem to be doing a good job.
thats all it does, a good job, by no means perfect.Â
thanks for the comments though. my code could indeed be simpler using "slope". I just did it last night having been using amibroker previously which is better at backtesting and yes, you could use my method slavishly although i only did it to backtest the methodÂ
if you can think of other entries happy to look at all of them
thanks again pcabc. I may open another thread simply for this topic
More questions about the Mansfield Relative Strength Indicator. What index do you use to compare?
These are the scenarios, with my guesses:
1- aapl would be compared to NASDAQ:IXIC (composite) OR NASDAQ:NDX (non-finance top 100)
2- ibm would be compared to NYSE:NYA (composite) OR SP:SPX (top 500)
3- cnr.to would be compared to TSX:TSX (composite) OR ???
4- znx.v would be compared to TSX:JX (composite) OR ???
5- grek would be compared to INDEX:XAX (composite) OR???
(2018-07-24, 10:43 PM)malaguti Wrote: Hi Pcabc, no trend lines. I could have used "slope" i could have used MA > MA[1] i just happened to choose the linear regression as that also signifies turning points. no other reason
Sorry, I typed trend-lines but I meant regression. Still, if it works it could be interesting, it should detect when a moving average is turning up rather than flattening. This may be of use at the ends of stages?
Quote:if you use close is greater than 30, then you are too quickly going from one stage to another
take the S&P again with a recent rising 30SMA. if you are in a stage 3 when it closes below, you would be in a stage 2 a couple of weeks later, where ive added the text in my chart.Â
the book and method looks to break a "high" an area of some previous resistance. i haven't yet come across in any charting package this concept of a high (almost like a zig zag), so ive used the donchian 20. you can see that the recent donchian break of the 20 again does seem to be doing a good job.
thats all it does, a good job, by no means perfect.Â
You've prompted me to have a think about this myself. I think I will have a go at a few methods and have a plasy with channels for that purpose. I effectively use channels to detect new highs in my screener.
Quote:thanks for the comments though. my code could indeed be simpler using "slope". I just did it last night having been using amibroker previously which is better at backtesting and yes, you could use my method slavishly although i only did it to backtest the methodÂ
if you can think of other entries happy to look at all of them
thanks again pcabc. I may open another thread simply for this topic
More questions about the Mansfield Relative Strength Indicator. What index do you use to compare?
These are the scenarios, with my guesses:
1- aapl would be compared to NASDAQ:IXIC (composite) OR NASDAQ:NDX (non-finance top 100)
2- ibm would be compared to NYSE:NYA (composite) OR SP:SPX (top 500)
3- cnr.to would be compared to TSX:TSX (composite) OR ???
4- znx.v would be compared to TSX:JX (composite) OR ???
5- grek would be compared to INDEX:XAX (composite) OR???
Regards,
Patrick
Personally, I think you need to choose one as the main one that you use, as you need a constant to measure all stocks against each other on first glance, or if you were putting the Mansfield data into a relative strength spreadsheet table. For me this is the S&P 500, as roughly over the years it has averaged around 7% a year, and covers the 500 major stocks in the US market, so I found it very good for the Mansfield RS. But you could choose something else, as long as it's representative of a decent portion of the market imo.
That way once you know how your stock compares to everything else. Then you can do secondary comparisions against the index it is in, the major sector, sub sector or commodity etc. And then versus the other individual stocks that are it's competitors.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
