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Attention Spread Traders,
Attached is a chart for the Wheat / Corn Sept 97 spread.
This is a real BAR SPREAD CHART, something I've been suggesting to Equis to consider for future MS upgrades. Each bar represents the numeric difference between H,L,C and O for the two securities.
At present time, when you create a spread with the Downloader
( composite ), when you display the chart all you get is a bunch of
dashes, representing ONLY the relation between Close prices.
Beware, though, that the numeric price difference between both
securities CAN sometimes be higher than the spread High or
lower than the spread Low for the day ( or the time period involved ).
The reason or explanation for this is, the HIGH or the LOW DOES NOT NECESSARILY OCURR AT THE SAME TIME during the trading
session.
Also, interesting to note is, sometimes the spread goes into negative
territory ( not shown in the file attached ) and you can see the chart
displaying negative values. Of course, in a "regular" futures contract the
price never goes down to zero but in some spreads ( like P Bellies /
L Hogs July 97, a few days it was around -300 ) constructed this way
the bars with negative values.
Note: the solid lines are a proprietary indicator, as well as the dashed
lines showing today's projected new highs and lows and are not needed
to create the spread bar chart.
I'll appreciate any feedback from spread traders as well as from Equis.
Good trading !.
Efrain R Portales
efrain12@xxxxxxxxxxxx
Attached is
Attachment Converted: "c:\eudora\attach\Wheat - Corn Sept 97.mwc - Wheat-Corn Sept 97.BMP"
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