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>Randy,
>Since some of the converation on this thread may have been through private
e-
>mail, we probably dont get the whole picture. Would you be kind enough to
>summarize it at the end for us RTs?
>Thanks.
>William
>P.S. Hope your minor surgery goes well and you have a speedy recovery.
William,
I.ve sent several explanations via RT's but much to my dismay they came
back
"mail failure"? Not sure why.
With apologies to Realtraders for duplication, I'll try to explain again.
(Took suggestion from book "Martin Pring on Market Momentum")
In Supercharts, I constructed 3 ROC (rate of change) indicators using 7,
14, & 20
bar lengths. I put them in the SAME window and SAME subgraph (one) as the
bar
chart and set the "scaling" to "screen". Using a 20 to 50 bar chart I look
for the three
indicators to CONVERGE to form a single "V" at the bottom of a move or an
inverted
"V" at tops. If you find the point on the chart where all 3 converge you
will see that they
reverse direction on the next bar to form a "V" with the APEX of all three
lined up. This
formation indicates a change in the direction of the trend (CIT) and is
very dependable.
I have used this on daily, weekly and monthly bar graphs with the same
results.
It works on indexes and futures as well as stocks.
You will also find formations where all 3 "V" apexes line up but there are
two or
three "V"'s formed instead of just one (check a recent daily chart of the
SPX or
OEX and you will see this). This formation, although good, is not as
dependable
as the single converging "V"formation of all three indicators.
OTHER OBSERVATIONS:
1. Micro "W"' and Micro "M"' ROC formations which indicate a CIT.
(especially
clear on weekly charts)
2. Shorter length ROC's using 5, 8, & 14 give added signals and
conformations.
3. volumn where the signals ("V") form seem to indicate the strength of the
move.
4. Congestion areas can cause a problem seeing the formations.
5. Volitile markets are very good candidates for this indicator formation.
6. Use the bar after the apex as the "buy" point.
7. Scrolling forward or backward may change the looks of the formation but
do not change the validity of the signal.
8. Others have said this works on intraday charts as well.
I will attach 2 daily charts from SC that will help explain.
I'm still looking for a clearer signal (inverted "V") indicating a CIT to
the down side.
They are not as frequent as the CIT upward.
Any feedback from anyone, positive or negative, would be greatly
appreciated.
from Petersburg, MI
Randy
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