[RT] Gen:OEX Entropy

[Ronald McEwan <rmac@xxxxxxxx>]

For all those who enquired about the Entropy Indicator. This is a copy of
a reply I sent to another member. My original  post was just meant to
give my short term outlook on the OEX and my reason for this using an
indicator I developed. And not to push a new indicator on anyone.
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All the information on this is in "The Mathematical Theory of
Communication" by Claude E. Shannon. It took me almost a year to
understand this enough to figure out how to use it. If you want to get
this book I suggest you get a very large bottle of aspirin to go with it.
I can give you the basic formula for this if you would like to see it. I
don't sell anything or charge for anything I do, I just don't give it all
away either. I believe that if you do not try to do some of the work
yourself you will not get a good understanding of how it works. 

thanks
Ron


formula for Entropy Calculation

     E(entropy) =     (Average / Root Mean Square) + 1 
                               
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Ron McEwan


ps Shannon's book has completely changed my way of looking at market
information.