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Dick,
I had industry group strength as one of my criteria in the old
Telescan searches. I don't think I can do that with QP2, but may be
able to with MicroSoft Investor's Finder. Thanks for the suggestion,
I'll look into it.
JimG
-----Original Message-----
From: Dick <dick@xxxxxxxxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Date: Sunday, November 15, 1998 6:30 PM
Subject: Re: Building Blocks - Charts, Trendlines, & Channels
>Jim, I have a question.....have you considered
>using industry group strength as another filter ?
>
>For example, you just recently chose cohu as
>a weekly pick, which is in the semi-equipment
>group, meanwhile, one group away is the semi-
>mfg group, including intel, many of which are
>making new highs. (many aren't btw, haha)
>
>But just like the internets, when people "bottom
>fish", they often do from the same group as the
>leading stocks. For example, I can see the promise
>of yhoo and aol, but elnk ? or seek? or eggs ??
>
>And that's what I mean.......the great success you had
>with eggs was probably because of it being internet
>related, and when a group gets hot like the nets, people
>seem to buy anything similar.
>
>I'm just thinking that adding the group strength to
>you selection criteria might improve even YOUR
>results ! <g>
>
>It's great to see you starting this new refinement thread...
>Can't hardly wait.
>
>Dick
>
>
>
>
>-----Original Message-----
>From: Jim Greening <JimGinVA@xxxxxxxxxxxxx>
>To: Metastock <metastock@xxxxxxxxxxxxx>
>Date: Sunday, November 15, 1998 11:38 AM
>Subject: Building Blocks - Charts, Trendlines, & Channels
>
>
>>All,
>> Before I discuss trend lines and channels as I promised, I want
>>to say a few words about the type of charts. Most people use H,L,C
>>bar charts for their charting. I don't, I use CandleVolume charts.
I
>>always thought that having an arbitrary time period such as a day
for
>>the x axis of a price time chart didn't make a lot of sense. When
>>Arm's wrote his EquiVolume book back in the 60s he made his x axis a
>>function of volume per unit time. This made a lot of intuitive
sense
>>to me. The more volume in a given trading period, the wider the
bar.
>>I've been using volume based charts every since then. When
MetaStock
>>started using CandleVolume charts I switched to them. In
CandleVolume
>>charts, the width of the candle is a function of volume, just like
>>Arm's equiVolume charts. I thought the additional information on
the
>>candlestick should be valuable, although I'll be the first to admit
>>that I have never gotten any consistent results based on only
>>CandleStick patterns. I keep using CandleVolume charts because I
like
>>the way they look and maybe, just maybe, I'll run across that magic
>>pattern some day <G>.
>> The reason I go into this, is that if you are using trend lines
>>or channels for signals, you will get different signals and
different
>>results with H,L,C bar charts and CandleVolume charts. I'm very
>>comfortable using CandleVolume charts and happen to think that they
>>give better results than H,L,C bar charts. Having said that, I also
>>have to say that I have absolutely no proof of that. I've never
done
>>a systematic study and haven't seen any done by others. But I feel
>>they are better and it's important to go with what you believe <G>.
>> For constructing trend lines I prefer Trader Vic's methodology.
>>For a Trader Vic up trend line, start with the lowest low in the
>>timeframe being considered. Draw a line to a low before the highest
>>high in the time frame and extend the line to the right. It's
>>important that you pick the right low to draw the line to. It must
be
>>before the highest high in the timeframe and it must be the one low
>>that will allow you to draw a line that doesn't intersect any data
>>before the highest high. A down trend line is just the mirror
image.
>>You start with the highest high in the timeframe being considered.
>>Draw a line to another high before the lowest low such that the line
>>does not pass through any data and extend the line to the right. To
>>construct the trend channel, draw a parallel line on the other side
of
>>the data that only touches the data at the extreme point. That is
it
>>doesn't intersect any other data points. This is easy with
MetaStock.
>>You can hold the CTRL key down, then hold the left mouse key down
once
>>you are on the original line and drag a parallel line to where ever
>>you want it.
>> I use these Trader Vic type channels for my long (years) and
>>intermediate term (few months to over a year) channels. I use the
>>channels to get my buy signals and set my stops. If they are wide
>>enough, I may even use them for setting my targets, but that will be
>>the subject of a later post. Right now I want to just concentrate
on
>>how I construct my trend channels. There is a problem with using
>>Trader Vic type channels for Short term (days to few months)
channels.
>>That problem is that you will tend to get too many false breakout
>>signals for a data set that hasn't gone through one or two
significant
>>corrections. To try to overcome this problem for short term
channels,
>>I use the Standard Deviation channels built into MS6.5. The problem
>>with this type of channel is to know where to start and end your
>>channel. I did not want this to be arbritary, so after some
>>experimenting, I decided on the following. For up trend channels, I
>>start my channel immediately to the left of the lowest low in the
>>timeframe being considered just like Trader Vic. Then I end my
>>channel immediately to the right of the highest high in the time
frame
>>being considered. Initially, I set the deviation at 2 and extend
the
>>channel to the right. Anytime a new high is hit, I'll drag the
right
>>end of the channel just to the right of that new high. As soon as I
>>get a decent reaction in the stock data, I'll check to see if I
should
>>change the deviation. I'll use 1, 1.3, 1.5, 1.8, or 2 for the
>>deviation, using the lowest number that will bound all the data
>>between the end points without intersecting any. After a few months
>>with at least two good reactions, I switch to Trader Vic type trend
>>lines.
>> That's it. That's the way I construct my trend channels so
there
>>isn't any arbitrary settings. Any questions or suggestions?
>>
>>JimG
>>
>>
>>
>>
>>
>>
>
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