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Strategies & Market Trends : Mu Gamma Lambda -- Ignore unavailable to you. Want to Upgrade?

To: Augustus Gloop who wrote (310)	6/11/2001 9:39:16 PM
From: Atin	Read Replies (1) \| Respond to of 10077

What I do when I don't know what a good box size might be is to use the average true range over the last 15 to 20 periods. The idea is that only moves that are beyond the average range should lead to reversals. So, if the average true range of the nas is 60 and I am using a 3 box reversal, I divide the range by 3 and get 20 and use that as the box size. If I get a move that is greater than or equal to 60 points in the reversal direction, I'd see a 3 box reversal. What I actually got was a box size of 20.55 but I take the number the program gives me and round it to the nearest "reasonable" number and use that as my box size to create a user defined box size chart. One of these days I'll put this up on Stockcharts.com too . . . after I finish some of the other work I'm doing there. -Atin