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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Michael Quarne who wrote (8619)	9/16/1998 7:14:00 PM
From: Monty Lenard	Read Replies (1) \| Respond to of 12039

Hi Mike, What I have been doing is scanning for the number of issues over the following Simple MA's: 10, 20, & 200. I do this for the following: NYSE, NASD, SP100, NASD100, SP400, SP500, SP600 & Russell 2000. In addition, the scans give me the Adv Issues Dec Issues Adv Volume Dec Volume New Highs & New Lows for each of the exchanges. For this exercise, I am not interested in which issues but the numbers. I then use Meta Stock to create a chart based on each of these tests. The number falling under or going over the shorter ma's tend to work the same as they do when you apply them to a chart. The real enlightning experience has been that these scans have shown divergences with the major indices mentioned above; thereby, giving a QUICKER buy or sell signal than the Indices do. Couple of examples: (1) When this last bottom started forming a few weeks ago, the scans told me long before the charts of the Indices did. (2) If a person had been looking at these scans they would have known without a doubt that 7/17/98 high was FALSE. This is somewhat of a simplification so if you have some specific questions I would be glad to answer them. Hopefully, I can simplify this process once I determine the ones that gives the clearer signals. The other lesson I have learned from manually posting this info into a spreadsheet is that I have been LOOKING at charts but this process forces me to SEE what is really happening. One other thing is that I know the volume on the SP100, Nasdaq 100, SP400, etc. and the ratio of adv vs dec. This has been interesting to watch as the money flow started to shift. Hope this is clear? Monty PS If I missed a post from you I appologize but I sure didn't see it.