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.

Non-Tech : Dorsey Wright & Associates. Point and Figure -- Ignore unavailable to you. Want to Upgrade?

To: Augustus Gloop who wrote (7955)	5/15/2000 4:57:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 9427

*Understanding the new DWA Technical Indicator Report.* Here is a run through of your new tool at DWA, The DWA Technical Indicator Report. You will find it at the bottom of the Main Page under the Reports and Charts List section (it is bolded). Looks like a lot of information when you open it up, and it is. To understand this report you need to have a good solid understanding of PnF otherwise, it will be way too much information. First thing you see are some radio buttons: Bullish Pct Momentums Pos Trend RS Pos RS Col X Ten Week *All These buttons are for limiting what you see, the fields that come up. The default is to bring up all of the fields at one time. First box is for the New York Stock Exchange. In this box you will see the 10 Week, 30 Week, HiLo and NYSE BP along with the additional features that will be in every other box. You will not find a 10 week, 30 week or HiLo (High Low) in any other box/section. The above mentioned charts are the same things you have been seeing (the indicators). Let's go over what is new to you and what these new features mean. In each section you have the following charts: A Bullish Percent. BP___ Momentum. MO___ Positive Trend. PT___ Relative Strength Positive RSP____ Relative Strength in X's RSX____ The BP's are the same charts you have been seeing. Sector Bullish Percents, NYSE Bullish Percent, OTC Bullish Percent etc. Updated once a week. The Momentums are new.(MO__) What this gives you is a separate chart specifically showing the momentum in that indicator or the sector. The Positive Trend (PT__)charts what percent in that sector or indicator is in a positive trend which is trading above their Bullish Support Line. The percent of components in that sector/indicator that is trading above their BSL. The Relative Strength Positive (RSP__) is the percentage of issues in that sector or indicator that are on an RS buy signal. The RS may be in O's but it is on a buy signal. This is a very very very long term indicator. The Relative Strength in X's (RSX__)is the percentage of issues in that sector or indicator that are in a column of X's. Has nothing to do with it being on a buy or sell signal, just the column. Here are the columns in order from left to right: Symbol - the symbol of the chart and link to chart Date - the date of the last update Level - The level on the chart at present Current - what the current reading is (may be different from the Level) Change - change from the previous week. Status - The alert levels, Bull Alert, Bear Confirmed etc. Column - whether the chart is in X's or O's. How to use this information: Just glancing at the column to the right which is called "column" immediately you can see what is predominantly in X's or in O's. If there are more X's that section is doing well, if it is more O's it isn't. Currently the NYSE is all (but one) in X's while the OTC is mostly O's - hence, the NYSE is doing better than the OTC. As you know if a stock is trading above its Bullish Support Line, in general, you go long - if it is trading below its Bearish Resistance Line, in general, you go short. Same here. With the PT chart, the Positive Trend chart, those sections that have an X mean the greater percentage of stocks in that sector are trading above their BSL. This is good. A section with this chart in O's is suspect, unless you want to be short. The Momentum chart is naturally going to move very quick. This is the momentum moving in and out of a sector or indicator. If you see a momentum turn to O's it is safe to assume that money is flowing out of that sector for the time being. A very short term indicator. As I mentioned the RSX, Relative Strength in X's is a very long term indicator. If this turns one direction or another it may be late in the game BUT, one to really watch. If it does move you would want to investigate the sector or indicator further. Don't just assume it is late - it may be telling you something more is on the horizon, good or bad. The reason it is so long term is that it depends on a sell or buy signal in the RS charts to turn. You have seen many charts where the RS has been positive for years and years, on a buy signal - and in order for it to change to a sell signal it has to decline significantly, that could itself take years. Something to watch. What you do is mold all these together. If the charts are all in O's that sector or indicator is out of favor and going long would really be difficult. The momentum probably would be the first to turn but alone isn't enough. As with anything, you need to continue your investigation and look at some of the individual charts etc. There is more. You will see links at the top of each box with: EQ Table - The bell curve for this section. Components - The stocks in that arena Activity - What the individual stocks are doing. You will recognize this from the portfolio features. The EQ Table shows you where each stock in that sector/arena lies, whether it is over sold or over bought - like the Bell curve. Those symbols in CAPS are charts that are in X's and those in lowercase are charts that are in O's. The Components is just a list of the charts in that sector/arena and links to those charts. Activity outlines what those individual charts do on a daily basis. Now, the charts are updated weekly. This does not mean they will change columns weekly but the reading are updated. You can compare the value between the "Level" and "Current" columns to see the change. If you see something starting to wane you would want to pay attention or something starting to gain strength. Important if it looks like things are starting to break down. Let's compare the NYSE and the OTC. Here is the NYSE Symbol Date Level Current Change Status Column New York Stock Exchange 10WEEK 05/09/2000 60.000 55.220 -5.0 Bull Confirmed X 30WEEK 05/09/2000 50.000 47.360 -3.5 Bull Confirmed X BPNYSE 05/09/2000 44.000 42.600 -2.5 Bull Confirmed X HILO 05/10/2000 48.000 47.070 -2.4 Bull Confirmed X MONYSE 05/12/2000 52.000 52.530 10.0 Bear Correction X PTNYSE 05/12/2000 38.000 37.980 0.3 Bear Correction X RSPNYSE 05/12/2000 18.000 18.150 0.0 Bear Confirmed O RSXNYSE 05/12/2000 26.000 26.990 0.0 Bull Alert X Everything above is in X's except the RSP (RS Positive). However, I look at the value in the "Current" column and see that it is improving - reading is 18.150 and the "Level" is 18.00. So, the RS buy signals are improving. Clearly the NYSE is doing well. Here is the OTC. Over the Counter Symbol Date Level Current Change Status Column BPOTC 05/09/2000 42.000 40.800 -9.2 Bull Correction O MOOTC 05/12/2000 50.000 50.360 23.8 Bull Alert X PTOTC 05/12/2000 20.000 24.430 0.3 Bear Confirmed O RSPOTC 05/12/2000 34.000 33.970 0.0 Bull Correction O RSXOTC 05/12/2000 28.000 30.640 0.1 Bull Correction O TWOTC 05/12/2000 24.000 21.900 0.5 Bull Alert X You can clearly see there are mostly O's here. The Momentum is in X's and improving (we know this because the "Current" is higher than the "Level") The change for the BP is down for the week but the Current is still higher than the Level. Being that it is in O's this is not good. The TW, ten week, is in X's but the Current is now below the Level and close to reversing down. Perhaps a new O will be added here soon. The OTC still looks pretty bad. Clearly, the NYSE is the place to be. That is pretty much it. We can talk about this more and it will be in the University when it is ready. For those that don't have the basics in PnF it is best to learn those first before trying to use all of this information.