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Re: DorseyE post# 24379

Saturday, 04/16/2005 7:15:39 PM

Saturday, April 16, 2005 7:15:39 PM

Post# of 82595
EDIT: great!!!!!!!! a test. i love tests. i guessed my way through college. (LOL) guessed into honarable mention at graduation.

Using the chart of SMTR you requested:

The uppermost subgraph is aroon. I really don't know much about it. I did discover through observation correlated activity with other studies afford interesting insights. I've shared this discovery on another board of technical discussion. The idea was thought so well of they put the instruction of it in their i-box. I think it's still there. http://investorshub.com/boards/board.asp?board_id=3073

It works like this: When aroon green crosses above gray in near proximity in time where Wm %r crosses above 50 and macd crosses above zero, you will see meaningful bullish activity. Vice versa if inverted.

The second subgrap is %r. It was created by Larry Williams - a modern mathematician extraordinaire. Many technicians agree it is a leading indicator. It oscillates from overbought to oversold elevations. Single print and trend divergence are often visible.

The main graph is price set in candlesticks of daily durations. I have done extensive research in naked trading using this chart configuration. In recent months I have created two trading techniques - "inside-out" and "skyhook". Both are most effective in futures trading but have utility in stocks as well. If interested in learning about my "inside-out" technique I can email you an abbreviated description of 4 or 5 pages in pdf formatting. It is easy to understand and no knowledge of technical studies is necessary.

The third subgraph is macd and macd histogram. I have read several books on this one study alone. It has several uses and many trading methods are founded on it. Lesser skilled technicians will argue it is a trailing indicator, but they do not understand its many uses. The macd is a collection of moving averages with smoothing characteristics added. The histogram is the measured difference between the slow and fast prints of the macd. I believe this technical ingredient is most beneficial if learned in depth.

The next subgraph is slow stochastics. It is a volume momentum study that oscillates from overbought to oversold. It affords divergence of varying kinds and interesting set data that experienced technicians can use in finding synchronized events and underlying momentum.

The following subgraph is cci (commodity channel index). It is a volume to price oscillator traveling from overbought to oversold elevations. I have researched this study to some extent and found quite interesting utility. It too affords data sets that can be used to locate synchronous events and underlying volume momentum.

The next subgraph is adi. It is a volume study of particular interest. Single print and trend divergence should be strongly considered when employing its service. In concert with obv, which is not shown, an experienced technician can locate new share distributions and systematic shorting. It is a quite valuable tool.

The bottom study is adx. I have just recently began employing it in analysis. Interesting basic use includes green and red intersections around or below the 20 elevation and the acceleration of trends when the blue line moves above the 20 elevation.

Sorry if I confused you. But these are elementary nutshell explanations of these studies. I have been a student of the science for over 15 years. I love it.







There comes a time when you define the moment, or the moment defines you. - Tin Cup