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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Paul V. who wrote (6252)	8/24/1998 3:17:00 PM
From: james ball	Respond to of 34811

Paul you might like to call him and get it e-mailed to you. There are some nuances concerning volatility he will need to explain to you. Having taught Statistics, one of my favorite subjects, you will understand easily. Tom

To: Paul V. who wrote (6252)	8/24/1998 10:11:00 PM
From: Smooth Drive	Respond to of 34811

Hello Paul, Back in July I did a little ditty on overbought/oversold relative to the DWA system. Message 5313406. I did a terrible job of reviewing what I wrote before sending that day. The corrected section of the second paragraph should have read: "For instance, say the median is at 50, the bottom at 40, top at 60 and the current X or O is at 43. Then we are in the 61 to 80% oversold range.(I put 21 to 40% overbought.) If the current X or O is at 55 (I put 35) then we would be in the 41 to 60% overbought (I put oversold) and so on." I'm sure this qualifies me for worst editing award. BTW, I also noted that I didn't have a better system. Not so sure about that now. I'm currently using Laszlo Birinyi's overbought/oversold indicator on all the stocks I track. It too is based on a 50DMA but calculated much differently than DWAs. Sometimes the 50DMA with 3 Stnd Dev and Birinyi's are close --- sometimes not. Interestingly,Chris (Stock Attack) and I were discussing this indicator recently via a PM and I'm going to review a few of the stocks that he and I both follow with this indicator. If interested watch for it there. Take care, Eric