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

To: The Perfect Hedge who wrote (6871)	9/7/1998 12:50:00 AM
From: Smooth Drive	Read Replies (1) \| Respond to of 34810

TO: Fellow P&Fers RE: ANCILLARY INDICATORS One of the secrets all P&Fers search for, the holy grail if you will, is an answer to the question: "After a P&F charts gives a certain signal, what can help me to determine if the direction will continue." I have asked a great many nice people at SI who I believed to be TA literate a question similar to that. Also asked a number of people not on the SI threads. Many have given me great ideas that I then experiment with. Some say "share if you want" and some say "don't share or bad karma will happen". I do what they say. Recently a non SI person suggested an indicator that's very simple yet remarkably accurate. Perhaps some of you have seen or used it but it was a first for me. He said to take the difference between the daily high and low, and use that as my daily volatility range. Then take 10% of that range and deduct it from the high, and call that the High Range. Next add the % to the low and call that the Low Range. Then, if the close falls in the High Range, there is an 85% chance that the next day's high will be higher. Conversely, if the close falls in the Low Range, there is an 85% chance that the next day's low will be lower than today's. I've ran this little indicator on the majority of stocks I hand chart and it's hitting a bit better than 85%. There's no telling where the next day's close will be etc, etc, but -- damn if the high isn't higher or the low lower. Here's a little dash of DELL. When you see a number in the high range, then look at the next day's high. When you see a number in the low range, look at the next day's low. HIGER LOWER DATE HIGH LOW CLOSE RANGE RANGE 9/4/98 111.25 104.75 109.50 0.00 0.00 9/3/98 111.13 105.00 108.06 0.00 0.00 9/2/98 115.50 108.88 110.25 0.00 0.00 9/1/98 110.00 93.75 108.38 108.38 0.00 8/31/98 120.69 99.00 100.00 0.00 101.17 8/28/98 127.00 116.13 118.75 0.00 0.00 8/27/98 129.38 122.88 125.06 0.00 0.00 8/26/98 129.38 121.38 128.63 128.58 0.00 8/25/98 124.13 120.75 124.00 123.79 0.00 8/24/98 120.25 118.50 119.13 0.00 0.00 8/21/98 120.75 117.00 117.50 0.00 0.00 8/20/98 122.94 116.88 122.13 0.00 0.00 8/19/98 121.25 116.38 117.94 0.00 0.00 8/18/98 114.13 109.00 109.56 0.00 0.00 8/17/98 110.75 105.38 110.56 110.21 0.00 8/14/98 108.19 103.94 105.63 0.00 0.00 8/13/98 108.44 106.50 106.50 0.00 106.69 8/12/98 108.75 106.75 107.56 0.00 0.00 8/11/98 107.94 105.25 106.25 0.00 0.00 8/10/98 110.38 106.25 110.25 109.96 0.00 8/7/98 109.81 106.38 107.25 0.00 0.00 8/6/98 108.19 103.25 107.81 107.69 0.00 8/5/98 107.25 98.25 106.75 106.35 0.00 8/4/98 111.13 105.75 105.81 0.00 106.29 8/3/98 110.94 106.50 109.19 0.00 0.00 7/31/98 113.25 108.13 108.59 0.00 108.64 7/30/98 112.94 106.88 112.75 112.33 0.00 7/29/98 111.25 107.00 107.38 0.00 107.43 7/28/98 113.75 107.50 108.25 0.00 0.00 7/27/98 110.31 101.50 110.25 109.43 0.00 7/24/98 108.44 100.88 104.88 0.00 0.00 7/23/98 112.19 104.78 105.38 0.00 105.52 7/22/98 110.88 105.50 109.44 0.00 0.00 7/21/98 117.69 109.75 110.88 0.00 0.00 7/20/98 118.25 114.38 116.00 0.00 0.00 7/17/98 117.69 113.88 117.56 117.31 0.00 7/16/98 114.25 109.13 113.75 113.74 0.00 7/15/98 112.63 108.44 111.88 0.00 0.00 7/14/98 109.38 106.63 107.38 0.00 0.00 7/13/98 106.63 101.56 106.19 106.12 0.00 7/10/98 102.00 98.00 100.81 0.00 0.00 7/9/98 101.63 96.00 99.88 0.00 0.00 7/8/98 96.63 91.38 96.38 96.10 0.00 7/7/98 92.44 90.00 91.00 0.00 0.00 7/6/98 93.88 90.88 91.75 0.00 0.00 7/2/98 93.50 92.31 92.88 0.00 0.00 7/1/98 94.25 92.38 93.94 0.00 0.00 6/30/98 94.50 91.75 92.81 0.00 0.00 6/29/98 95.25 93.44 94.13 0.00 0.00 6/26/98 93.13 91.38 92.38 0.00 0.00 6/25/98 95.56 91.50 92.00 0.00 0.00 6/24/98 94.88 91.50 93.25 0.00 0.00 6/23/98 93.38 88.00 93.13 92.84 0.00 6/22/98 88.98 84.63 87.88 0.00 0.00 6/19/98 85.81 84.63 84.75 0.00 0.00 6/18/98 85.75 83.88 84.63 0.00 0.00 6/17/98 87.56 84.50 85.69 0.00 0.00 6/16/98 85.06 80.75 84.97 84.63 0.00 6/15/98 82.81 79.94 80.25 0.00 0.00 6/12/98 83.50 79.75 82.88 0.00 0.00 6/11/98 84.75 82.50 82.69 0.00 82.73 6/10/98 86.13 83.63 83.69 0.00 83.88 6/9/98 85.75 83.25 85.50 85.50 0.00 6/8/98 85.25 83.00 83.69 0.00 0.00 6/5/98 85.25 82.13 84.56 0.00 0.00 6/4/98 84.75 81.25 84.50 84.40 0.00 6/3/98 85.50 80.19 80.25 0.00 80.72 6/2/98 82.69 79.75 82.63 82.39 0.00 6/1/98 82.25 77.25 78.31 0.00 0.00 5/29/98 85.69 82.13 82.41 0.00 82.48 5/28/98 86.50 84.00 84.63 0.00 0.00 5/27/98 86.75 81.13 86.13 0.00 0.00 5/26/98 88.63 83.44 83.94 0.00 83.96 5/22/98 87.38 83.13 85.63 0.00 0.00 5/21/98 92.00 86.88 87.06 0.00 87.39 5/20/98 96.25 91.25 91.75 0.00 91.75 5/19/98 98.00 93.50 94.59 0.00 0.00 5/18/98 95.31 91.25 94.50 0.00 0.00 5/15/98 96.25 89.38 90.00 0.00 90.06 5/14/98 97.63 95.00 95.25 0.00 95.26 5/13/98 98.50 95.50 98.25 98.20 0.00 5/12/98 94.38 90.50 94.38 93.99 0.00 5/11/98 94.94 90.25 90.38 0.00 90.72 5/8/98 92.00 85.94 91.75 91.39 0.00 5/7/98 87.81 86.25 86.63 0.00 0.00 5/6/98 89.13 87.25 87.44 0.00 0.00 5/5/98 89.25 86.13 87.69 0.00 0.00 5/4/98 88.50 84.63 88.00 0.00 0.00 5/1/98 84.25 80.75 84.06 83.90 0.00 I'm experimenting with $INDU, SPY, etc., and they need a different % (need to be optimized) but it works there too. Try it and see. Take care, Eric