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Strategies & Market Trends : Dunnigan's Swing Formulas

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To: MechanicalMethod who wrote (23)1/27/2002 10:17:42 PM
From: MechanicalMethod   of 37
 
Regarding the 1/10/02 NDX reversal bar. A paste from my notes that suggests using trend as partial determinant of dir... and my initial reaction.

"perhaps some weight can be given to the last reversal signal which was a sell."

That's interesting because I distinctly separate dir from trend but the way you mention it gives me some additional ideas to mull over regarding that. I had envisioned that once trend was identified everything would paint 1 color, but I want to stop out for short term dir changes and take repeat signals early. There's room for a 3rd class somewhere between dir and trend that uses trend bias to influence how responsive dir is to dir change. If trend is down and dir is up then I need to exit, but trend itself can be a component weight of acceptable dir reversal. Having trouble getting my mind around that but now that's it's defined I can save it and work out the programming later. It's straight forward and valuable insight, not all that hard to understand, but requires variables to integrate it into code. Particularly difficult since I've neglected trend in favor of dir lately. But! Thanks again for another great idea!
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