A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi Toof, Re: v-Wave...................

The v-Wave is a calculated value based upon new weekly data and the residual of the previous data. In other words, it's a smoothed (or moving) average of the data.

The raw weekly data is also calculated. The difference between the calculated raw data and the smoothed data is the Oscillator. So if each week we subtract the Raw from the Smoothed, we get a value. That value can be plus, zero or minus.

A negative value indicates that the smoothed value is higher than the raw value. That indicates the market risk is drifting lower than its recent history. The opposite is true, also. If the value of the Oscillator is zero, it means there is no difference between the smoothed and raw data indicating market risk is steady and unchanging.

So, in general, a positive Oscillator means market risk for current and near future investing is on the rise. A negative value means risk has started to decline from recent levels and the investing climate is improving.

I'll see if I can plot the Oscillator against the v-Wave. Maybe that would be helpful.

Best regards,