Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Attitude Alphabet Project -- Ignore unavailable to you. Want to Upgrade?

To: ACAN who wrote (391)	10/25/1999 12:03:00 AM
From: Doug R	Read Replies (1) \| Respond to of 670

ACMRXYZ back on line: AMSC AND CAIR CVSN CTEC MIKE MLIN MRVT RFS RMG XIRC Doug R

To: ACAN who wrote (391)	10/25/1999 3:49:00 AM
From: Doug R	Respond to of 670

Allan, As a matter of review from the seminar concerning PAIR I was asked this question in a PM: >>>Good morning- Eons ago you posted the message below on SI - I found it because I'm searching for info on CCI spike and not much is available online - I have the formula for it in MetaStock and it appears to test well based on some preliminary work. Do you know where I might find it's basis (I'd prefer not taking Rina Systems' $2400 course to obtain info <grin>). Thanks for any guidance you may offer. Craig you previously wrote: Here's something interesting. A whim to use a 233 dMFI hit me tonight. It's absolutely awesome IMO. Excellent for establishing a bullish (I should say "ballistic") threshold line. It would be worked in along the same method as the SMI bullish threshold line. Hmmm...perhaps I should couple it with the SMI bullish threshold...or maybe an 89, 3, 5 move over 80. Or better yet, couple it with the 89, 3, 5 screaming buy signal...or the MACD trend line screaming buy signal. Maybe using a CCI spike signal within the last 10 weeks as a turbo-charger. Yikes...I've suddenly found myself back in my lab.<<< My response: The CCI spike work that I've done is all my own. There are 3 periods to consider. The 13 dCCI, the 21 dCCI and the 34 dCCI. A spike that occurs on a price surge is a sell signal. A spike that occurs off an intermediate or long term low is a buy signal. You have to be prepared to deal with a several month lag between the buy spike and a price move. To verify the spike as a buy signal, you will also see the Positive Volume Index (PVI) cross over the Negative Volume Index (NVI) at about the same time. To better time entry based on these signals (which are both very early signals), it is best to track the PVI for an accelerated uptrend. At the present time, PAIR's chart is an excellent example. The PVI crosses the NVI on 3/23/99. The 13, 21 and 34 dCCIs all show a prominent spike that peaks on 4/14/99. This spike occurs AFTER the price has fallen from the 1/23/97 high of 43 1/4 to the price, immediately preceding the spike, of 8 1/2 on 4/7/99. Now here's the cool part... The PVI established an uptrend along its lows on 12/16/98 and 3/10/99. This uptrend led to the crossover of the PVI above the NVI. From the 3/10/99 PVI anchor, there is a solid acceleration established on this indicator. On 8/10/99 the PVI dipped to a point that did not quite touch the 12/16 to 3/10 uptrend. Then the PVI vaulted upward away from that initial "pre-crossover" trend line. This gives you the very definite CCI spike followed by PVI acceleration with the price very much off the alltime high. There are also several other strongly confirming technical factors involved that make PAIR an extremely high potential/low risk opportunity here. The main point of the CCI spike is, sell quickly on a CCI spike that occurs when price reaches a high and get ready to buy AFTER a CCI spike that occurs following an intermediate to long term drop from a high. Use of the PVI/NVI xover followed by PVI uptrend acceleration improves timing. There are a few more technical considerations to bring timing into better focus but I'd have to type for another 3 hours to even get 1/2 of it partially explained. Suffice it to say, the setup on PAIR here, as obviated (to me) by the CCI and PVI/NVI stuff is definitely one that points to a return to well above 30 again. Doug R