This is from the book, "Trading Systems and Methods" by Perry J. Kaufman
Buy when the 5-day ROC (rate-of-change) is below the 252-day ROC for two consecutive days.
Sell when the 5-day ROC is above the 252-day ROC for two consecutive days.
252 trading days are equal to 1 year. 5 trading days is a week.
So this strategy suggests to buy if weekly ROC is lower than annual ROC and sell if it is higher.
But does not increasing ROC indicates that the price is going up? So this strategy should be opposite to what it states.
Being a novice, I must have understood it completely wrong. Can someone shed some light on this, please?
Submitted April 17, 2017 at 04:21AM by waferthin http://ift.tt/2oCKPi6
