No. The colors are predetermined.
Wilder and Sloman based Delta on cycles derived from patterns perceived to correlate with lunar phases. These cycles were first broken down annually, seasonally then eventually daily.
The work advanced or splintered off into separate schools of thought. I suppose that's the only way of putting it. People who experimented with Delta at first, circa 1983, worked together on it. I followed the technique around that time but lost interest as my main occupation at the time was engineering and could not spend the time.
By around 1989 I picked up Wilder's book on it and started to catch up. By that time people who used it had gone in different directions with it and all I did was familiarize myself on the theory.
Just over a year ago I went to Camp and learned his variation of it. Although the original premise was based on lunar cycles, by the time I got to Camp he had conducted a study using Vanderbilt students of Hans Stoll, a pre-eminent author who writes/teaches with respect to market formulae. Camp used the students to research market cycles and came up with a method of predefining each day's pattern and then using patterns that were historically similar try to pinpoint at what intra-day time would there be a high probability that a market trend would occur. For example, today has a 60% probability of a negative reversal at 3:35 EST. This is Camp's number not mine, though I see how he got it.
So anyway, to keep things straight, he had the students assign colors to the various patterns. Today is yellow. Tomorrow is green, and so on. This is also a red week but divining weekly patterns is harder than daily. If one were to presume that weekly patterns worked the same as daily patterns, one would have bought the open on Monday and gone to sleep until Friday's close.
Anyway, that's the general idea. It's not for everyone.
He tracks other neat stuff as well. For example today if the DJIA trades to the upside and breaks the equivalent (as determined by SP8H) of +45 it has 100% odds of running higher with 83% odds of closing positive. Breaking +60 it has 100% odds of trading to between +80 and +187 with 100% odds of closing positive. Projections like these are based on historical precedents relative to trading days coming off patterns seen in the prior few days. Could he be wrong? Sure. I'm just a glutton for information, that's all. Sometimes knowing that the percentages favor this or that happening re-inforces my resolve relative to decision-making. |
