AI
Monday, April 12, 2004 6:57:15 PM
deepster.......re: MRI
The MRI is a combination of 7 technical indicators.
The thought process during it's construction was to create 1 indicator that would give a relatively complete and simple visual picture of the degree to which a stock has moved either bullishly or bearishly. This could then be compared to it's past moves to determine the possibility of a further move, or the failure to move as much as it had previously.
Obviously this type of indicator would tie in nicely with X_DEV's rendering of extreme deviations.
The way to read the MRI is to compare where price is currently at to the level at which the MRI is at. This will quickly give you an assessment on whether the risk of entry is high or low, or the risk of exiting is favorable or not.
For example, looking at the compx mri which I post in the header window every day, you can quickly see the risk of entry here is high. That may or may not mean an entry here will be a losing proposition. It simply means that much of the current short term run has possibly been had and a correction or consolidation of some sort may be in the cards. There are never any guarantee's in technical analysis as I'm sure you know. It's all about the odds.
The MRI is just another tool among many that may help one trade better if used as it is intended.
The MRI is a combination of 7 technical indicators.
The thought process during it's construction was to create 1 indicator that would give a relatively complete and simple visual picture of the degree to which a stock has moved either bullishly or bearishly. This could then be compared to it's past moves to determine the possibility of a further move, or the failure to move as much as it had previously.
Obviously this type of indicator would tie in nicely with X_DEV's rendering of extreme deviations.
The way to read the MRI is to compare where price is currently at to the level at which the MRI is at. This will quickly give you an assessment on whether the risk of entry is high or low, or the risk of exiting is favorable or not.
For example, looking at the compx mri which I post in the header window every day, you can quickly see the risk of entry here is high. That may or may not mean an entry here will be a losing proposition. It simply means that much of the current short term run has possibly been had and a correction or consolidation of some sort may be in the cards. There are never any guarantee's in technical analysis as I'm sure you know. It's all about the odds.
The MRI is just another tool among many that may help one trade better if used as it is intended.
~Mystic One~
http://stockwerld.com
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