Indicator developer and commodity trading advisor
Tushar S. Chande
Tushar S. Chande holds a PhD, has been president of LongView Capital Management in West Des Moines, Iowa, and is a registered commodity trading advisor. He holds nine US patents and has created several widely used indicators, including Aroon, the Chande Momentum Oscillator, StochRSI and VIDYA.
What they argue
- Whether a market is trending, and how strongly, can be judged by how recently it made its latest high or low (the idea behind Aroon).
- Indicators can adapt their speed to market volatility rather than using fixed look-backs (VIDYA), and a trader needs an original point of view to survive.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Books and papers
- The New Technical Trader (with Stanley Kroll) (1994)
- Beyond Technical Analysis
Aroon trend
Rule and full recordTrend following · daily
Measures how recently price made its 25-day high versus its 25-day low. Fresh highs mean an uptrend.
Best risk-adjusted results against buy and hold:
Chande Kroll Stop (10, 3, 20)
Rule and full recordBreakouts & channels · daily · with Stanley Kroll
Two stop lines built from recent highs, lows and average ranges. Be in once the close clears both lines; get out when it falls below the long stop.
Best risk-adjusted results against buy and hold:
Chande & Kroll StochRSI 0.2/0.8
Rule and full recordMean reversion · daily · with Stanley Kroll
The stochastic formula applied to the 14-day RSI: where today's RSI sits in its own 14-day range. It reaches overbought and oversold far more often than RSI does. Buy out of oversold, sell out of overbought.
Best risk-adjusted results against buy and hold: