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Strategies & Market Trends : TA- Scans and System Tests

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To: Tom Gibbs who wrote (825)8/7/1997 10:54:00 AM
From: wolfgangl   of 989
 
Tom, I think Henry tested what he is using. I would like to know how he does it. He went over his screening in a hurry. I was not able to write down everything. Basically I do not think that he would have described his procedure completetly.
I took Price/revenue and (P/E)/Growth, because the guest hosts on CNBC Squak box dwell on those two numbers.

Doing statistics on fundamental numbers would be an interesting subject. In a way you can do it with a free software that is distributed to subscribers of "Zacks analyst watch on the internet".
One actually can plot there as a scatter plot, for instance P/E vs price developement 6 months after announcement of that number.
I have done several tests and the surprising result was that there are very little correlations. I should repeat tests with those two numbers.

Wolfgang
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