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<HTML><HEAD><TITLE>Zamansky-Stendahl Abstract 9707</TITLE>
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<P align=left><FONT size=2>Re: Dynamic Zones-(part1) - </FONT><FONT
size=2>formula</FONT><FONT size=2>+article </FONT><FONT size=2>(part 2 =
article's gif)<BR><BR>Basicaly the formula was previously given in the floating
Dynamic OB/OS Zones and<BR>for a variaty of indicators. Included were:<BR>the
Bollinger %BBand(20), RSI(9 or 14), CMO(10 or 20) etc. etc.<BR>and formula was
derived from an article in the Dutch TAM-magazine.<BR><BR>Notes:<BR>The Standard
Deviation (see MS-man. p. 276-466-493)<BR>1.0000 stdev = 68.26%, the 68%
confidence/fear level (roughly Fractal 2/3 Retracement)<BR>1.3185 stdev =
90.00%, the 90% confidence/fear level (OB/OS-Zones)<BR><BR>Here is a (re-)
written version, now for the also here below included
July97-TASC-article:<BR><BR>Name:<BR>Dynamic Zones -
Zamanski&Stendahl<BR><BR>Formula:<BR>{Zamansky&Stendahl's Dynamic Zones
for MS6.5.<BR>(From the TASC July1997 article). First for the<BR>Lookback
Periods plot a 9-day RSI along with<BR>StDev adjusted rolling 70-day SMAs, eg as
can<BR>be seen in the article's S&P500-example}<BR>PR:=Input("Enter Periods
for RSI",1,100,9);<BR>PB:=Input("Enter Periods for
BUY",1,100,70);<BR>PS:=Input("Enter Periods for
SELL",1,100,70);<BR>UpZone:=Mov(RSI(PR),PS,S)+(1.3185
*Stdev(RSI(PR),PS));<BR>LwZone:=Mov(RSI(PR),PB,S)-(1.3185
*Stdev(RSI(PR),PB));<BR>UpZone;<BR>LwZone;<BR><BR>Regards,<BR>Ton Maas<BR><A
href="mailto:ms-irb@xxxxxxxxxxxxx";>ms-irb@xxxxxxxxxxxxx</A><BR>Dismiss the
".nospam" bit (including the dot) when replying.<BR></P></FONT></FONT></DIV>
<CENTER> </CENTER>
<CENTER> </CENTER>
<CENTER>
<HR noShade SIZE=6 width="65%">
<B>NEW TECHNIQUES</B>
<HR noShade width="33%">
<BR><BR>
<P></P></CENTER>
<H1 align=center>Dynamic<BR>Zones </H1>
<CENTER>
<P>
<HR>
<B><I>by Leo Zamansky, Ph.D., and David Stendahl</I></B><BR>
<HR>
<P></P></CENTER>
<BLOCKQUOTE>
<P><I><FONT size=+1>Most indicators use a fixed zone for buy and sell signals.
Here's a concept based on zones that are responsive to past levels of the
indicator.</FONT></I>
<HR>
<BR><BR><FONT size=+1>O</FONT>ne approach to active investing employs the use
of oscillators to exploit tradable market trends. This investing style follows
a very simple form of logic: Enter the market only when an oscillator has
moved far above or below traditional trading levels. However, these
oscillator-driven systems lack the ability to evolve with the market because
they use fixed buy and sell zones. Traders typically use one set of buy and
sell zones for a bull market and substantially different zones for a bear
market. And therein lies the problem.<BR><BR>Once traders begin introducing
their market opinions into trading equations, by changing the zones, they
negate the system's mechanical nature. The objective is to have a system
automatically define its own buy and sell zones and thereby profitably trade
in any market -- bull or bear. Dynamic zones offer a solution to the problem
of fixed buy and sell zones for any oscillator-driven system.<BR>
<P></P>
<P><B>CALCULATING THE DYNAMIC ZONES<BR></B>The algorithm for the dynamic zones
is a series of steps. First, decide the value of the lookback period <FONT
size=+1>t</FONT>. Next, decide the value of the probability <FONT
size=+1>P</FONT><FONT size=-2>buy</FONT> for buy zone and value of the
probability <FONT size=+1>P</FONT><FONT size=-2>sell</FONT> for the sell
zone.<BR><BR><BR></P></BLOCKQUOTE>
<CENTER>
<P> </P></CENTER>
<BLOCKQUOTE>
<BLOCKQUOTE>
<CENTER>
<P><B>Figure 1: Buy and sell zones, S&P 500. </B><I>Figure 1 illustrates
the buy and sell zones for the Standard & Poor's 500 market using a
nine-day relative strength indicato. The area above and below the dynamic
zones constitute the upper and lower 10% boundaries. The zones appear to
evolve with the market because they use a rolling 70-day period of indicator
values in their construction.</I><B>
</B><BR><BR><BR></P></CENTER></BLOCKQUOTE>
<P>Figure 1 illustrates the buy and sell zones for the Standard & Poor's
500 market using a nine-day relative strength indicator (RSI). The area above
and below the dynamic zones constitute the upper and lower 10% boundaries. The
zones appear to evolve with the market because they use a rolling 70-day
period of indicator values in their construction.<BR><BR></P></BLOCKQUOTE>
<P>
<HR>
<I>Leo Zamansky is president of Rina Systems, Inc., which specializes in the
design, development, evaluation and improvement of trading systems.<BR>David C.
Stendahl is a professional trader and vice president of financial services with
Rina Systems. Rina Systems is the developer of Performance Summary Plus and
Portfolio Evaluator, performance evaluation software packages for Omega
Research's TradeStation and SuperCharts. Zamansky and Stendahl can be reached at
513 772-7462.</I>
<P></P>
<H5><I>Excerpted from an article originally published in the July 1997 issue of
Technical Analysis of STOCKS & COMMODITIES magazine. <BR>© Copyright 1997,
Technical Analysis, Inc. All rights reserved.</I></H5>
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From: "A.J. Maas" <anthmaas@xxxxxx>
To: "Metastock-List" <metastock@xxxxxxxxxxxxx>
Subject: Re: Dynamic Zones (part2-gif)
Date: Sat, 14 Aug 1999 02:16:23 +0200
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