Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Vitas who wrote (16086)	6/5/1999 1:49:00 AM
From: Chip McVickar	Read Replies (1) \| Respond to of 99985

Vitas....I'm going to bed, it's 1:30 here on the east coast and my insomnia is fading. But here is a quick description of the Reaction Indicator. It incorporates the price range and trading volume for a particular period by using an aspect ratio: aspect ratio = high-low ÷ volume = R ÷ V Then you have to normalize it to an average range and volume taken over a number of periods: f = R/R ÷ V/V WHERE: R = range in the period V = total volume for the period R = average period range over recent past V = average period volume over recent past Then the formula goes on for another page describing the use of the aspect ratio to measure market behavior: including 5 more math formulas. There you go...now my eyes are really red. BTW....he teaches at the JFK School of Management...his grad students probably helped write this book. I'm not sure how much of it is going to be digested. Take Care Chip