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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (6374)	2/16/1999 1:03:00 AM
From: Smooth Drive	Respond to of 99985

Hello LG, Thanks for that input. You might find the Dow Jones 20 Bond Average P&F chart of interest. It's my main fixed income/interest indicator. It is nothing short of amazing. Every day in the Wall Street Journal, they post the Dow Jones 20 Bond Average. It's a composite of 10 industrial and 10 high grade utility bonds. I keep a hand chart of this chart, but obtained historical data and stats from CHARTCRAFT/INVESTORS INTELLIGENC. With their permission, I'll show a little of the chart and then provide a few stats: 107.00 X X 106.08 X O B O 106.06 X O X O 106.04 A O X C 106.02 X O 2 106.00 2 X O < DBS 105.08 X O X 105.06 X O 9 105.04 X O X X 105.02 1 O 1 O 7 105.00 X O X O X 104.08 C 3 C 4 X 104.06 X O X B O 104.04 X O X O A 104.02 B O X O X 104.00 X O X X 8 X 103.08 A O < High Pole X O X X O X 103.06 X O X O X O 2 7 9 103.04 X O X C X O X O X 103.02 X 4 B O 1 X O X 103.00 X O X O 3 X 102.08 9 O A O X 102.06 X O X X X O X < Low Pole 102.04 X O X O X O X O 6 102.02 X O X O X O X O X 102.00 O 5 DTB > 8 O X 4 X 101.08 O X 7 X O X O 5 101.06 O X O X O X 9 X O X 101.04 O X O X O X O O X 101.02 O 6 O X O 101.00 O 100.08 9 9 9 9 6 7 8 9 Chart interpretation is pure mechanical. Buy (long) on all Double Top Buy (DTB) signals and all Low Pole signals. Sell (short) on all Double Bottom Sell (DBS) signals and all High Pole signals. A DTB occurs when a column of X's exceeds the previous column of X's. A Low Pole occurs when an O column moves below a previous O column by at least 3 boxes, and the next X column retraces more than 50%. A DBS occurs when a column of O's exceeds the previous column of O's. A High Pole occurs when an X column moves above a previous X column by at least 3 boxes, and then the next O column retraces more than 50%. For instance, a DTB occurred at 102 in August of 96. A Low Pole at 102.6 in June of 97. A DBS occurred at 103 in January of 97, and a High Pole at 103.08 in March of 96. On the bit of chart above, interpretation would be as follows: LONG GAIN SHORT GAIN BUY SELL OR (LOSS) OR (LOSS) 09/95 @ 103.00 03/96 @ 103.80 0.80 1.80 08/96 @ 102.00 09/96 @ 101.60 (0.40) (1.20) 10/96 @ 102.80 01/97 @ 103.00 0.20 .40 06/97 @ 102.60 02/97 @ 106.00 3.40 Going back to 85, results are as follows: Hold -- from 8/85 @ 79.80 to present > + 26.20 Points OR Gains from Buys > 50.20 Points Gains from Sells > 24.40 Points Buy/Sell Total Gains > 75.60 Points Take care, Eric