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The basic hitch with using the raw McOsc is that buy/sell signals need
to be factored for both price trend of the composite index and for
extreme downside conditions. This is the beauty of Gerald Appel's Time
Trend III (highly ranked proprietary market timing system) on which my
primary model is based. Generally, I have noted that use of the
support/resistance trendlines as you have drawn is of some use in
reducing whipsaws.
Earl
----- Original Message -----
From: "BobR" <bobrabcd@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, February 24, 2000 8:49 AM
Subject: [RT] GEN - timing with 10% McClellan Osc
>
> Since there is always a need to be looking for short term buy and sell
> signals....
> Here is a quote from the Feb 18, 1989 Richland Report by Kennedy
Gammage on
> the use of the 10% component of the McClellan Oscillator.
>
> "SELL and BUY signals are rendered by the 10% exponential component of
the
> McClellan Oscillator when the plotted 10% breaks below uptrending fan
lines
> (SELL Signals) or breaks up above downtrending fan lines (BUY
Signals).
> However, the hitch is that unless and until these signals are either
> validated and / or confirmed, the signals may be very
short-term --lasting
> only one or two days --which is of little use to any but stock index
> players. Therefore, we desire desperately, as the heart pants for the
> stream, to see 900 to 1,000 or more issue-pluralities on the day of or
after
> the break, and/or 90 to 100 point-moves (or more) in the 10% index
itself
> on the day of, or the day after, the trendline break, to Confirm
and/or
> Validate the signal."
>
> Attached is the status of things at the moment where the NYA is on a
sell
> and the buy trendlines are being generated for the next buy signal.
The 10%
> component of the McClellan oscillator is the faster moving average of
the
> two it is composed of.
>
> bobR
>
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