CCI or MACD?
MACD doesn’t seem to work well on the daily charts. It is ok on the weekly and monthly charts especailly using lagged inputs. I recently came across a brochure from Nirvana Systems (OmniTrader 2004 and VisualTrader) Ed Downs, who was soliciting me to join the ARM3 club ($500 membership) where ARM3 uses AI techniques and Genetic Algorithms to come out with rules. One such rule is: When a trading channel forms with a width of 15-20% and volume is increasing 7-10% above the 21 day moving average of volume, a signal from the MACD system has a 73% probability of winning. I have no reason to doubt it. It could very well be. But the problem with such techniques gleaned using AI techniques is that they become obsolete after a few years because the inefficiencies that have been detected have been traded away by over time traders who have discovered these inefficiencies. Nevertheless, I have added MACD back on to my verification systems, though it is a long way from being my primary system. But
