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On Wed, 27 Jan 1999 10:28:22 -0800 (PST), william robson
<robbossuk@xxxxxxxxx wrote:
>I read about an Indicator quite a while ago called the Meisel
>Indicator wrote by a Canadian guy called Ron Meisel.
Hi Spike,
Meisels Indicator - Developed by Ron Meisels of Nesbitt Thompson Inc.,
Montreal.
Count of the number of days for which the share prices, etc has risen
or fallen over a moving ten day period. Number of falls is subtracted
from the number of rises and the surplus is plotted as a positive or
negative number on the chart.
ie: No Rises(over last 10 days) - No Falls (over last 10 days)
Max and min obviously +10 or -10, becomes overbought or oversold at +
or - 6. Note: Can use any period ie: 50 days but 10 days is the
default.
You take the last ten trading days' data and see whether the price has
fallen or risen (from the previous day), as given in the following
example:
Week 1 Week 2
====== ======
Mon: Up Mon: Up
Tue: Down Tue: Up
Wed: Up Wed: Down
Thu: Up Thu: Down
Fri: Down Fri: Down
You then add up all the "Up"s and subtract the total of all the
"Down"s from it. The result is the Meisels Indicator. In the example
above, there are 5 ups and 5 downs; so the indicator would be 0.
Obviously, in a given period, the indicator cannot be more than +10 or
less than -10. Thus, the overbought/oversold conditions are
represented by the +6/-6 lines respectively.
In practice and it seems quite crude. However, once its 3 SMA
plotted,, it looks OK. Can be a useful indicator.
For more details, you can consult: "How Charts Can Make You Money" by
T. H. Stewart; published by Woodhead-Faulkner (or Nichols Publishing,
New York). Available from Synergy Software.
Synergy Software, Britannic House, 20 Dunstable Rd., Luton LU1 1ED.
England. Tel.: (0582) 424282 Fax: (0582) 482741
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