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Re: Divergence



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If you have Excel you could OLE data to Excel from MS 6.5. There you
would construct your formulas to determine your bullish and bearish
conditions. You could then OLE this final data back to MS 6.5. Not a
perfect system but it could work.

Harley

Ron Sanders wrote:

> 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 .....
>