RE: [RT] near a bottom

["Clyde Lee" <clydelee@xxxxxxxxxx>]

For answer to Bob's question, please examine the

notes on the chart that came with the original

posting..

 

On that chart I explain that one time series is a

"theoretical linear series" and the other is the

symbol price series.

 

This approach, statistics be damned, causes the

Correlation Coefficient to generally swing between

a high positive number (price series going up) and

a large negative number (price series going down).

 

As with any indicator, the "lag" can be partially

offset by taking a trade as soon as the coefficient

starts to move from the maximum/minimum.

 

Clyde

 

Here is a theoretical picture that may shed some

light on this approach.

 

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Clyde Lee                 phone: 713.783.9540
SYTECH Corporation
7910 Westglen, Suite 105
Houston, TX  77063     fax: 713.783.1092
WebSite:       www.theswingmachine.com
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

----- Original Message -----

From: Robert Pardo at Mindspring

To: realtraders@xxxxxxxxxxxxxxx

Sent: Wednesday, December 19, 2007 07:56 AM

Subject: RE: RE: [RT] near a bottom

Hi Clyde,

 

What are the two time series that are being compared by the statistic?

 

Thanks.

 

Regards,

 

Bob Pardo

__._,_.___

Your email settings: Individual Email|Traditional
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch to Fully Featured
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe

__,_._,___