|
PureBytes Links
Trading Reference Links
|
I have been reading J. Murphy's "Intermarket Tecnical Analysis" and have
been thinking about how to use MS 6.5 to determine if divergence is
occuring between two market indicators (ex. Dow Industrials and Treasury
Bonds). In Chapter 2 of Murphy's book he discusses how the bond collapse
in April 87 (divergence from the Dow Industrials) warned that it was time
to be cautious in the stock market.
Could someone give me some ideas on how to design an indicator to determine
if a significant divergence is occurring? I was wondering if utilizing the
Liner Regression Slope formula in a composite security would be
appropriate, however, I'm at a loss to figure it out.
I'm also curious if MS 6.5 can build an Expert system that incorporates
info/indicators from several different charts. For example, if you wanted
to show a bullish ribbon/trend for a stock when interest rates were
dropping, the CRB index was dropping and the Dow is above its 200 day
moving average and the individual stock is above its 150 day MA....could it
be done?
Any comments or help is appreciated! Thanks .....
|