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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (37550)	3/26/1998 7:54:00 PM
From: IngotWeTrust	Read Replies (1) \| Respond to of 58727

The "trick" w/Wm's %R is: underlying stk/index/commodity MUST BE a trending mkt. No, I haven't altered the default perameters in my rav fav Parity+ software program. Basically a Base 21 tool, to use the modern new math lingo. You see, %R, CCI, MACD, Sto, etc., etc., etc. can ALL be maximized by using trendlines connecting highs and lows to confirm previous highs or lows just like anyother trendline indicator, only on the %R graphic portion of your chart. (Parity calls them PANES) As my "guru" Tom DeMark likes to teach, draw all trendlines right to left, instead of the traditional left to right... gives the better weighting to the most recent action that way. ORCTF is in a definite uptrend. %R has made 2 lower lows, I'll grant you, but not AFTER the new trend was confirmed. And when I say new trend, I'm talking 50 day, 2 outta 3 closes above or more. This 2 outta 3 rule usually rules out the whipsawing that tends to occur around trend changes. I do use %R in daytrading, usually on active stocks and on 2 min. intervals, frankly... but whatEVER the time interval, the action must be a trending market. Suggest you draw a line from the recent %R turn of 2 days ago on your ORCTF chart back to the most recent low low %R put in...you'll see the confirmation of the recent low, and feel much more comfortable reading %R in the future. Williams is quite amazing frankly, and I find his %R quite a nifty tool. ESPECIALLY in short-term trading. If all this is clear as mud, I'll try again, but I do hope this helps. O/49r