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<font size=3>Gitanshu,<br>
<br>
At 08:46 AM 3/1/2000 -0500, Gitanshu Buch wrote:<br>
<blockquote type=cite cite>John,<br>
Quick question based on the details given in your explanation and
your<br>
comment re NDX soap/bubble Symwave:<br>
<br>
Why does it matter if swings are measured from<br>
- intraday highs to intraday lows, versus<br>
- closing highs to closing lows?<br>
<br>
Conceptually the waves measure % swings in both cases.</blockquote><br>
<br>
You are correct about the conceptual reasoning. However, with
symmetry wave, the concept is to also measure the emotional behavior of
market participants. This truly applies during market panics in
which, more often than not, the market has a capitulating selloff or
panic before it reverses and 'hammers' out a definitive bottom.
Such 'hammers' often form after a market, stock or commodity has already
been in a downtrend and hammers out a bottom on a particular trading
day. The makeup of this hammer forms when a market opens near the
previous days close, panic selling ensues which dramatically
moves the market lower, followed by buyers who step in and rally the
market back toward the days open. During these capitulations,
investors/traders become irrational (depending on the time frame and the
magnitude of the wave structure you are measuring). It is these
irrationalities that become repetitive and as such symmetry wave attempts
to measure such price swings and emotional behavior using intraday highs
and lows.<br>
<br>
As for your question regarding why use percentage declines verse
point declines. Simply, if we look at an extreme, let's say the
1987 crash. During that decline, the S&P Cash fell 121 points
but represented a 35.8% decline. In today's terms, the S&P can
fall 121 points in several days and reflect less than a 10%
decline. Unfortunately, as we move forward into the smaller subset
wave structures, it becomes a 'judgement' call as to whether use point
basis or percentage basis unless it is relatively clear cut. Such
as in my example of the S&P analysis of the current downtrend.
Believe it or not, when I find myself conducting an analysis in which I
don't know whether to use point vs. percentage declines, I simply
calculate it both ways and wait and see what unfolds.<br>
<br>
Finally, your question regarding how SymWave differs from Elliott
Wave; I don't understand what the question is.<br>
<br>
Hope this helps,<br>
John <br>
<br>
<br>
<br>
<br>
<blockquote type=cite cite>Reproducing relevant snippets of your emails
below that confused me.<br>
<br>
Thanks<br>
<br>
Gitanshu<br>
<br>
From the NDX Soap/Bubble email:<br>
<br>
a/ that Gitanshu's declines were based on a closing basis whereas
SymWave<br>
uses intraday highs and lows in its calculations. Therefore,
please<br>
disregard most of what I said yesterday<br>
<br>
From the explanation email:<br>
<br>
b/ Note: When working with proportional markets, you can calculate
declines<br>
on a point basis but as a market moves outside its trading range (as in
this<br>
case), then calculate magnitude declines on a Percentage basis to
more<br>
appropriately measure price movement and investor behavior.<br>
<br>
c/ SymWave differs from the Elliott Wave theory in that it
organizes<br>
SIMILAR-SIZE RETRACEMENT WAVES<br>
</font></blockquote><br>
</html>
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Subject: [RT] Re: Symwaves explanation
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<font size=3>Gitanshu,<br>
<br>
At 08:46 AM 3/1/2000 -0500, Gitanshu Buch wrote:<br>
<blockquote type=cite cite>John,<br>
Quick question based on the details given in your explanation and
your<br>
comment re NDX soap/bubble Symwave:<br>
<br>
Why does it matter if swings are measured from<br>
- intraday highs to intraday lows, versus<br>
- closing highs to closing lows?<br>
<br>
Conceptually the waves measure % swings in both cases.</blockquote><br>
<br>
You are correct about the conceptual reasoning. However, with
symmetry wave, the concept is to also measure the emotional behavior of
market participants. This truly applies during market panics in
which, more often than not, the market has a capitulating selloff or
panic before it reverses and 'hammers' out a definitive bottom.
Such 'hammers' often form after a market, stock or commodity has already
been in a downtrend and hammers out a bottom on a particular trading
day. The makeup of this hammer forms when a market opens near the
previous days close, panic selling ensues which dramatically
moves the market lower, followed by buyers who step in and rally the
market back toward the days open. During these capitulations,
investors/traders become irrational (depending on the time frame and the
magnitude of the wave structure you are measuring). It is these
irrationalities that become repetitive and as such symmetry wave attempts
to measure such price swings and emotional behavior using intraday highs
and lows.<br>
<br>
As for your question regarding why use percentage declines verse
point declines. Simply, if we look at an extreme, let's say the
1987 crash. During that decline, the S&P Cash fell 121 points
but represented a 35.8% decline. In today's terms, the S&P can
fall 121 points in several days and reflect less than a 10%
decline. Unfortunately, as we move forward into the smaller subset
wave structures, it becomes a 'judgement' call as to whether use point
basis or percentage basis unless it is relatively clear cut. Such
as in my example of the S&P analysis of the current downtrend.
Believe it or not, when I find myself conducting an analysis in which I
don't know whether to use point vs. percentage declines, I simply
calculate it both ways and wait and see what unfolds.<br>
<br>
Finally, your question regarding how SymWave differs from Elliott
Wave; I don't understand what the question is.<br>
<br>
Hope this helps,<br>
John <br>
<br>
<br>
<br>
<br>
<blockquote type=cite cite>Reproducing relevant snippets of your emails
below that confused me.<br>
<br>
Thanks<br>
<br>
Gitanshu<br>
<br>
From the NDX Soap/Bubble email:<br>
<br>
a/ that Gitanshu's declines were based on a closing basis whereas
SymWave<br>
uses intraday highs and lows in its calculations. Therefore,
please<br>
disregard most of what I said yesterday<br>
<br>
From the explanation email:<br>
<br>
b/ Note: When working with proportional markets, you can calculate
declines<br>
on a point basis but as a market moves outside its trading range (as in
this<br>
case), then calculate magnitude declines on a Percentage basis to
more<br>
appropriately measure price movement and investor behavior.<br>
<br>
c/ SymWave differs from the Elliott Wave theory in that it
organizes<br>
SIMILAR-SIZE RETRACEMENT WAVES<br>
</font></blockquote><br>
</html>
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From: DiNapoli Client Services <list@xxxxxxxxxxxxx>
Reply-to: DiNapoli Client Services <list@xxxxxxxxxxxxx>
Subject: DiNapoli Market Commentary.
Hello Traders/Investors,
Joe DiNapoli has been warning of a severe market down-move
since Oct/November last year.
February's market action confirms that we are in danger.
Things could get much worse!
You are invited to read Joe's latest perspective on the following website.
http://www.savagetrader.com/ezine/
This pattern is called a Double-RePo, and is fully explained in
Joe's book "Trading with DiNapoli Levels".
Clients who belong to our Proprietary web pages on
http://www.fibtrader.com/
have been watching this develop for some time.
This pattern provides some exciting and scary trading opportunities,
let's be ready..
-Coast Investment Software Inc.
PS. This message is being sent to traders who have
joined our email list or requested information from
our web pages.
Reply with a subject of REMOVE to be deleted from our
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