AI
Tuesday, November 25, 2008 12:25:40 AM
$DWC Linear Regression Study...
AIM users may find this chart of interest. Using a proportioned LRS, the trend is easily identified along with high/low ranges and intermediate swing points for buying/selling rebalancing. Overshoots past the normal distribution can occur, but an additional channel to catch them can be added. Ladder users such as myself can scale the ladder dynamically to the 19 ranges on the study. Ranges will extend up or down as the bull/bear trend continues so cash levels will always reflect an optimum, not a fixed level.
Since stock valuation models are subjective, numerous, and involve future estimates, the market can determine where tops/bottoms occur and it will reflect the majority of investors in the market at the time. The markets are ever adaptive due to the number of investors involved with them.
The bottoming pattern that was setting up in September was erased with the October/November sell offs causing further technical damage to the chart. I have a feeling this bottom will be unlike previous ones due to the severity of the sell off. I'll be posting this chart on a week end basis. You will see the bottoming patterns set up and eventually the slope of the median line start to flatten over time.
AIM users may find this chart of interest. Using a proportioned LRS, the trend is easily identified along with high/low ranges and intermediate swing points for buying/selling rebalancing. Overshoots past the normal distribution can occur, but an additional channel to catch them can be added. Ladder users such as myself can scale the ladder dynamically to the 19 ranges on the study. Ranges will extend up or down as the bull/bear trend continues so cash levels will always reflect an optimum, not a fixed level.
Since stock valuation models are subjective, numerous, and involve future estimates, the market can determine where tops/bottoms occur and it will reflect the majority of investors in the market at the time. The markets are ever adaptive due to the number of investors involved with them.
The bottoming pattern that was setting up in September was erased with the October/November sell offs causing further technical damage to the chart. I have a feeling this bottom will be unlike previous ones due to the severity of the sell off. I'll be posting this chart on a week end basis. You will see the bottoming patterns set up and eventually the slope of the median line start to flatten over time.
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