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PREDICTIVE ACCURACY OF TECHNICAL INDICATORS 

 

1. MACD Vs. Stochastic Oscillator in Terms of Probabilities

jhjhClick on the numbers in cells to open our Back Test Reports. 
 
Stochastic Oscillator
MACD
Daily charts:    
Bullish Pattern
61.3%
68.0%
 Bearish Pattern
59.7%
62.2%
Weekly charts:    
Bullish Pattern
62,3%
75,1%
Bearish Pattern
65,9%
81,0%
 Predictive accuracy is measured in terms of probabilities to move higher after occurences.
(5 days for daily charts and 10 days for weekly charts) .

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Finding: MACD significantly dominated Stochastic Oscillator in all back tests.
2. Bullish Japanese Candlestics
 
 
 
 
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