Sunday, April 27, 2008

MACD

Today I learned MACD. It is an indicator of how price is going. It won't really predict the future, but you can learn a new pattern from MACD curves, rather than the stock price curve itself.

MACD is smoother (because it's based on moving average), and arguably less time-lagged than the moving average itself.

Now I regret not having used system identification method to build a model for stock market. It could result in some thing like MACD.

 

No comments:

Post a Comment