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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Teresa Lo who wrote (11219)	2/2/2001 8:42:49 AM
From: Chip McVickar	Read Replies (1) \| Respond to of 12039

Teresa, >>I think just clocking the present speed of the market will not be a difficult task<< I look forward to anything that you might uncover. 'Present speed'..., there are inherent problems with measuring the "present speed" of the market bars, it's a matter of physics. Enclosed are a few indicators taken off my Windows on Wallstreet charting software and they are all an attempt to measure movement. There are others. But these indicators all use 'past' information to determine the future. First you have the 'Idea' - then people pick up the phone - then you have the bars - then you have volume and somewhere an indicator is developed to define what everyone wants to know. Where's the market going...? Anyway..., in looking for present speed, time and order, only forward looking math like Fibonacci numbers seems to define these in any seemingly reliable manner. But this is also what the e-wavers believe....? <smile> ~~~~~~~~~~~~~~~~~~~~~~~ 1. "Polarized Fractal Efficiency" Polarized Fractal Efficiency (PFE) is based loosely on fractal geometry and from a January 1994 Stocks and Commodities article. Look for times where PFE flattens out. Prolonged low values (around -80) can indicate upcoming upward turns. Consider a long entry. Prolonged high values (about +80) can indicate an upcoming downward turn. Consider closing a long position or selling short 2. "Volatility (Chaikin's)" The Volatility (Chaikin's) indicator is the percentage price change or fluctuation over a given period of time. The indicator is calculated based on the rate of change of a moving average of the difference between high and low prices. In increase in Chaikin's Volatility over a short period of time can be an indication of an upward turn or the slowing of a downward trend. Consider a buy if confirmed by other indicators. A decrease over a long period can indicate downward turn. Consider a sell if confirmed by other indicators. 3. "Standard Deviation" The Standard Deviation indicator displays the volatility of prices as an indicator over a specified period of time. High volatility is indicated by high Standard Deviation. Low volatility by a low standard deviation. A high standard deviation (i.e., high volatility) is sometimes an indication of a price may stop rising. This may not indicate a coming fall in price necessarily. The price could stop rising and remain steady. 4. "Accumulation Swing Index" The Accumulation Swing Index signals an upward breakout when the indicator crosses a recently previous significant high of the indicator. It signals a downward breakout when it crosses below a recently previous significant low. One method for its use is this: Find a recently previous significant peak (or valley) of the indicator. If the indicator reaches that value again then the security is said to be ready to break upward or downward. (Upward if the recent significant value is a peak. Downward if it is a valley.) 5. "Swing Index" The Swing Index makes its calculations based on the relationships between today's prices and yesterday's prices. The Swing Index was introduced by Welles Wilder in his book, New Concepts In Technical Trading Systems. Swing Index is usually used in its cumulative form, 'Accumulation Swing Index.'