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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Doug R who wrote (19472)	7/19/1998 5:31:00 PM
From: bdog	Read Replies (3) \| Respond to of 79283

Master Doug. Oh no. Another chiding! [GTNR] [MetaStock vs Parity] At first reaction, I said, "Hey wha...? Is he on drugs?" So, before I bravely enter where few dare for fear of immeasurable repercussion and complete written humiliation, (that is, disagreeing with you >ggg<) I thought I had better put on the Doc's glasses. After all, your TA is awesome even at 2 am in the bar! The results are disturbing. Those of you that have MetaStock and Parity might want to follow along. I would be curious if you come up with the same result. For that matter, I would like to hear about the result from any other charting package as well. A heavy drawdown such as GTNR will usually make me look at what went wrong and question my stop as well. A trade in the right direction that exceeds my expectation also makes me question the TA. What did I miss? What components were more important? Does TA work? Am I sane? DOUG! Ignore the IL? I traveled across country for that precious gem! Now, I do always question it (trouble is, I never listen). I don't like an IL that converges. And for me TA is subjective and not always cut and dry, even the cross of a signal line. You just change the value in the indicator box. The only sure thing is that I will be not be right very often. For you there is only one IL/ACT. For me, well, I have a wandering mind... On GTNR I not only drew the IL, I did the mini and ML as well. (BTW...a weekly look would have behooved me. I'm starting to like that one.) The ML has not been discussed much in my presence so I may be drawing it incorrectly from the get go. The IL and ML did not jive. I looked at price and volume confirmations. I chose to ignore for just cause, albeit bdogonian logic. So I drew the doghouse IL. I was mislead. Here's how. I reloaded GTNR from AOL in case I had corrupt data. I plopped the sucker in Parity. I drew the ACT and the IL. It was not exactly parallel. "AH HA! Doug is slipping!" But it was not converging. In Metastock it was converging. Hmmm. Let's dive deeper, I need to be more accurate. For those that want to follow along in Meta Stocks try this. Load GTNR and draw the ACT and IL. Display a little less than a year with 60 extra days. Scroll back and forth. Not only do the lines change angles, the price shows it has penetrated the ACT at certain scrolls. YIKES. How to be accurate now? So I turned off the y axis scaler in Parity to keep lines from distortion. I zoomed in close to be highly accurate, a requirement in Voo world ( BTW the ACT IS 4/9) and presto. We have parallel. Exactly! Dude! You dog! Right on the money! LOL! No argument here. IL confirmed. So what about MetaStock? Corn and snakes! (that's for goodness sakes in lil'dog language). Has anybody else run into this? I know it does this on a major zoom out but if you can't trust the lines at zoom level, what good are they? Smokes! Here is another spin: Check this out. If you change the chart to a semi-log scale (Parity can't do this) the IL/ACT dynamic changes drastically. The price is near the ACT. WHOA! Pring prefers a semi-log because it reflects more accurately the changes in crowd psychology which tend to move proportionately. All this long winded bemoaning to say what? PIG DOG! 1. Know thy world. 2. Know thy tools. 3. Keep em sharp. 4. Reduce subjectivity but stay flexible. I discovered: Dougonian World: Monday was a sell as far as the IL goes. Prings World: Monday was a buy as far as the ACT on a semi-log chart goes. The dogatory: Monday was a still a buy, sigh. I have seen stocks go higher even if above IL. I was wrong. How so? Price went the other way.>g< Conclusion: I'm not 100% sure of my world and tools. I'm still in a quandary as to which lines to trust. I need to concentrate on a smaller number of stocks. I'm glad you scolded me. It made me take a closer look. Keep it up Doug. 56 rocks! bwonderdog