Re: [RT] thoughts on A/D lines

["sunfiles" <sunfiles@xxxxxxx>]

Dear Gary,
 
Do you have the TradeStaion code for your oscillators 
presented in your memo that you would be willing to share?  
 
Thanks,
Brian Oliver
<A 
href="mailto:sunfiles@xxxxxxx";>sunfiles@xxxxxxx
<BLOCKQUOTE 
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
  ----- Original Message ----- 
  <DIV 
  style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
  Gary Funck 
  
  To: <A title=realtraders@xxxxxxxxxxxxxxx 
  href="mailto:Realtraders@xxxxxxxxxxxx Com">Realtraders@xxxxxxxxxxxx Com 
  
  Sent: Friday, June 21, 2002 10:44 
PM
  Subject: [RT] thoughts on A/D lines
  (I posted this to another list. Basically, the 
  discussion had to do withrefining the A/D line, for example only tracking 
  the stocks in the S&P 500.This is a reply to a question that I raised, 
  as to whether the A/D line has anyparticular predictive power above and 
  beyond a straight price oscilator.)This is a follow-up on the 
  following idea:>> 3) The idea of watching the A/D presupposes 
  that it has predictive value on> where the underlying index is going. 
  Notably, it should point to oversold and> overbought conditions. How 
  reliable is it?  Bill and others have offered some> thoughts on 
  how to use the A/D line, but the larger question is why would the> A/D 
  line give a truer picture of the market index in question than> simply, 
  for> example, summing up the %-changes over a given timeframe.  
  Chande (I think)> popularized an oscilator that was 
  basically:>     A / (A + D)> where A is the 
  daily (weekly, whatever) percent positive changes and> D was 
  the> daily percent negative changes.  Would this oscilator look 
  much different if> stand advance/decline data were substituted for A/D 
  instead?>See attached chart, with the Nasdaq Composite in the 
  top sub chart, anindicator showing the new highs as a percentage of (new 
  highs + new lows) overthe past 20 trading days in the middle chart.  
  The bottom sub-chart shows anoscilator  (in red) similar to the 
  $NASI, or McClellan oscilator applied to theNasdaq; this oscilator shows 
  the number of OTC advances over (OTC advances +OTC declines) ove the past 
  20 days, expressed as a percentage. The line ingreen is the sum of 
  positive %-changes of the Nasdaq Compositie divided by theabsolute value 
  of all %-changes, expressed as a percentage. Thus, the greenline is a 
  function of Nasdaq price only, and the red line is a function of theA/D 
  statistics. Note that the green price oscilator line is in close 
  agreementwith the red A/D oscilator, though the green line is a bit 
  "noisier". Also,note that the New Hi/Low oscilator seems a better 
  indicator of relative levelsof oversold or overbought. The New Hi/Low 
  indicator isn't showing a sufficientlevel of oversold to signal a 
  significant, tradeable bottom, yet.To unsubscribe from this 
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