trendscanner
265 posts
msg #82638
- Ignore trendscanner |
11/8/2009 8:36:20 AM
Keep in mind that one thing missing from these VPCI filters that the creator of the indicator intended to have in there is a TREND CONFIRMATION indicator. Quoting from the paper "Price and Volume, Digging Deeper", by Buff Dormeier, that someone was kind enough to post a link here earlier:
"Remember, VPCI is designed to be used in a trending market with a trending indicator."
In his backtesting of this approach, he used ADX(7) > 30 as his trend confirmation indicator and he was out of the market completely when there was no confimation from the trend indicator.
If you're going to trade this filter, you might want to consider adding that or another trend confimation indicator to this filter.
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