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Walt presented code today for the article in July TASC titled "Rainbow
Charts". Later in the day Clyde passed on an oscillator to use with the
Rainbow charts. The top plot is of the hourly OEX, a half hourly chart is
hidden to save space, but yet is available for use with indicators. The
bottom plot then has an hourly oscillator, green line, and a half hourly
oscillator, white line. One recommendation is to trade in the direction of
the longer term trend. So in this case when the green line is in the minus
region sells are taken when the white line peaks out. Conversely when the
green line is positive buys are taken when the white line bottoms out. The
caution here is to take a close look at the rainbow chart based on price.
If it is turning on edge and is narrowing like in the last few hours of
Wednesday you might expect the uptrend to have aged to the point where it
might be turning down on Thursday. This is also true if the rainbow has
been trending down and turns on edge you might expect the trend to be
changing to up as happened on the 21st.
BobR
Attachment Converted: "c:\eudora\attach\FEAR3Dhrly.gif"
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