Hello Everyone,
When I look back over all the messages related to Ocroft's Methodology, several issues keep coming up.
The reason I am replying to this older message is because it contains answers to two confusion issues initially raised by Conrad. Namely: "Why bother to look at the PC change, since you already know that Price has gone up?" and "The Licello "flaw" of Residual Buys".
The reason you feed the price info into the spreadsheet, even when you can see the price has reversed, is because of the "Flaw" -- Residual Buy Advice. Ocroft's method does not allow him to "actually" enter a position until the reversal is significant enough to override the residual and eliminate all buying advice. No buying advice means that PC will not be affected, therefore, it is time to buy. Residual buying advice would, theoretically, change PC.
Hope this helps,
Bob
