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<DIV><FONT color=#000000 size=2>Group:</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Am looking for any possible feedback on
reliability of the following idea from</FONT></DIV>
<DIV><FONT color=#000000 size=2>George Lindsay. Perhaps someone has
already coded and backtested it? </FONT></DIV>
<DIV><FONT color=#000000 size=2>Here goes:</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT size=2>This indicator is based on comparison of the Dow closings with
the net</FONT></DIV>
<DIV><FONT size=2>advances, that is advances - declines for the day. When
the Dow registers</FONT></DIV>
<DIV><FONT size=2>3 higher closes, each in new high ground for the move, while
the net advances</FONT></DIV>
<DIV><FONT size=2>show 3 lower peaks a sell signal is given.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>The Dow must first rally to new high ground for the rally (not
necessarily new all</FONT></DIV>
<DIV><FONT size=2>time highs), then pullback. The Dow will then rally even
higher but on the second</FONT></DIV>
<DIV><FONT size=2>high the net advances for the day are less than the net
advances at the first peak.</FONT></DIV>
<DIV><FONT size=2>The Dow will then pull back again. After that second
peak the Dow must decline</FONT></DIV>
<DIV><FONT size=2>again. After that decline the Dow will then rally to a
3rd higher peak. However, on</FONT></DIV>
<DIV><FONT size=2>that 3rd peak the net advances for the day are even lower than
the second peak.</FONT></DIV>
<DIV><FONT size=2>This pattern generates a sell signal.
Example:</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>April 14: Dow closed at 9109.46......Net Advances were
796</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>April 15: Dow high of 9159.03</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>April 16: Dow low of 9076.57</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT size=2>April 17: Dow high of 9167.50.......Net Advances
584</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>April 20: Dow low of 9141.84</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>April 21: Dow high of 9184.94 (3rd Closing
High).......Net Advances 200</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>This caused a sell signal on April 21.</FONT></DIV>
<DIV><FONT size=2>____________________________________</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Thank you for your time, attention, and potential
feedback.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Charles</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV></BODY></HTML>
</x-html>From ???@??? Tue Mar 16 08:05:28 1999
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Date: Tue, 16 Mar 1999 10:43:37 -0500
Reply-To: bfulks@xxxxxxxxxxxx
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From: Bob Fulks <bfulks@xxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: Re: CHAOS BOOK?
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At 9:42 AM -0500 3/16/99, charles meyer wrote:
>I only have an inkling about the meaning of Chaos Theory as per an
>example known as the 'butterfly effect'. Which one book out there is
>best regards any practical application to using Chaos in trading?
>Comments on this subject from experienced users? Thanks for any
>feedback.
"Chaos and Order in the Capital Markets" by Edgar Peters (ISBN
0-471-13938-6) is an excellent book on the subject.
Bob Fulks
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