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 : Quote.com QCharts -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (9037)	9/8/2000 8:32:57 AM
From: Louis V. Lambrecht	Respond to of 17977

Allan - will have a look at the peaks. Agree with you about MS. Some time ago I used both MS and QCharts, and a pain in the.. to maintain the daily data. Haven't checked last MS version lately, but I hate to pay twice (and twice the exchange fees) to have RT data on both. QCharts indeed comes handy when switching time frames. I currently am training for a 2-3 days trading horizon (options) and make a tour between different time frames until one shows recognizable patterns. Some long term trends are obvious on monthlies, some - as staircases (markup phase or big player buying) - best seen on 60-30 or 15 min. In June late, I only looked at the 60min. Currently I have a workspace I switch to when I am planning to trade, this one has 6 charts with different time frames. Now, the equity PCR I work on was best analyzed by Bernie Schaeffer (http://www.schaeffersresearch.com/), but you can never go back to a former article on that site. Only mention left is in his schaeffersresearch.com . The ahve been other articles in Stocks&Commodities and on financialweb.com I do not agr with: seems that the authors only look to be paid on lines written, not on the study they make (or do not make). Bernie Shaeffer uses the 10DMA and levels of .4 (overly bullish = contrarian sell) and .5 (overly bearish = contrarian buy). I found 0.55 as sell level more appropriate. Most authors I came accross used 10DMA, but their testing period was suspect, never saw a full one year graph. My theory is: Individual investor mostly only buy calls (due to limitations of most brokerage houses on authorized types of options trading). Another rationale I like also is that individual investors buy calls when all of their money already is fully invested in shares: a spike in the calls volume can then be considered as the exhaustion of the rally: no money left to bid up the shares. Maybe this is the reason why the sell signals equities PCR has given to me were correct for sell signals and fuzzy for buy signals. Still working on it. My observations: Sell signal generated when the 21DMA has been below 0.4 and breaks that level upwards. I must say that I've got 3 sell signals between Dec and Apr, with no buy signal, last buy signal end of May. And as the DMA has to cross that level twice (one down, one up), you have an early warning of about 1 week, plenty of time to change your strategy. Also had no signals for the Jul peak and bottom, and the PC vol seems to be more appropriate for shorter term swings. TTYL