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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Walkingshadow who wrote (5425)	2/26/2005 7:27:51 PM
From: Walkingshadow	Respond to of 8752

Re AMD example: Don't make too much of this in terms of whether or not AMD is a good short or a good long. Actually, there are conflicting signs now (e.g., stochastics), so the jury is still out. The main point is that depending on how you set the time limits of the regression channel, you can come to wildly different conclusions, particularly if there has been a major trend change recently within the time limits. T

To: Walkingshadow who wrote (5425)	2/26/2005 11:11:22 PM
From: Gersh Avery	Respond to of 8752

Nice!! thanks!! Again .. all of the data points are used to define the center line. In contrast, a fork is defined by just three. Each new data point added will have impact on the set. Even more so if that point is outside those lines. .. You could have a spike up in the market which would result in the LR channel becoming more upward tilting. The reverse with a spike down. It could take me a while to understand what makes a "proper" or "improper" choice of values for the LR chart. One of the major benefits of forks is their usage to determine when a trend has ended. A break up or down out of a fork could well be a useful piece of information.