Indicator with Data of Another Indicator

[Tresor]

Hello guys,

Recently someone told me there was a quite broad use of indicators that are derivatives of another indicators. E.g. One can use Bollinger Bands with the use of RSI data (instead of price data).

This guy told me that such combined indicators (derived on data of other indicators, previously derived on data of yet another indicator) are used by quants and smart investors.

Do you guys use such indicators? Can you confirm if such indicators are of any use? Any examples?

Thanks

[Head2k]

I am a beginner in trading, so maybe my case is just a newbie indicator fever, but I use a few indicators on indicators. Yet I must understand the interpretation. That limits me to usage of ROC or MA of some other indicator.

[Tresor]

Are these in EasyLanguage?

[Tresor]

Originally Posted by Head2k I am a beginner in trading, so maybe my case is just a newbie indicator fever, but I use a few indicators on indicators. Yet I must understand the interpretation. That limits me to usage of ROC or MA of some other indicator.

Would you mind telling which indicator on indicator are these and maybe posting some codes?

Regards

[forsearch]

Originally Posted by Tresor Hello guys, Any examples?

MACD, based on the difference between 2 MAs
StochRSI, stochastic of an RSI

[Tresor]

Any more sophisticated examples and how to use / interpret such combined indicators?

Maybe some screenshots

[Head2k]

I recently started to observe an hourly ROC of VWAP. To VWAP please refer to jperl's threads in MP section. The interpretation is obvious: to measure the strenght of daily trend.

[forsearch]

Originally Posted by Tresor Any more sophisticated examples and how to use / interpret such combined indicators? Maybe some screenshots

You know how to use Google. And don't say there's a lot of useless links. Try it, and you'll find some. A little bit of elbow grease goes a long way.

[Tresor]

Originally Posted by forsearch You know how to use Google. And don't say there's a lot of useless links. Try it, and you'll find some. A little bit of elbow grease goes a long way.

Please accept my apologies for asking questions on indicators in the "Trading Indicators'' section.

Regards

[thrunner]

John Bollinger's book 'Bollinger on Bollinger Bands'
Swisstrader has these indicator coded. You can find him on the TS as well as the MC (Tssupport) forums.