Replies to post #38226 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldAIMGuy]

Thanks Ray, Re: W%R Explanation.................

Why didn't I think to do that??????

Must be my new age related symptoms showing up!

:-)

[OldAIMGuy]

Hi Ray, Re: Williams % R Oscillator and AIM trade range.............

Here's a nice example showing emerging markets and how they've been range bound for about three years. During that time there have been some price cycles that were at least 20% in moves (see Zig Zag line) that would have most likely triggered AIM activity. (settings of 10% Buy SAFE, 0% Sell SAFE and 5% of PC for min. trade value)



Note this is a Weekly chart. The zigs and zags coincide nicely with the W%R oscillator. This is why I've used it as a confirmatory indicator for a long time. There are times that W%R will trip through the -20% and -80% lines while the Zig Zag line won't have moved 20% over that same 14 week period. I've always used the default 14 weeks as a base, but one could experiment with other time frames to see if there is better correlation.

Here's WisdomTree's emerging markets "dividend" ETF by comparison. Both have been relatively range bound, but the healthy yield of the DEM fund seems to have dampened some of the possible trading. Note that the W%R line oscillates in generally the same time periods, but just not enough to generate Zigs and Zags.



and I-Shares EEM.........



These represent "filtered", "dividend weighted" and "cap weighted" as three different ways to construct an index of generally the same market segment.

Perfchart of all three:
http://stockcharts.com/freecharts/perf.php?FEM,DEM,Eem

Thanks again!

[The Grabber]

Hi Ray!
I hope this reply from me is not repeating what you learned from someone else

Not repeating at all.

Actually a better response I think.

Being that I am a 'Certified Old Fart' (see previous thread), I had forgotten about the Chart School. ;-)

Thanks.

[SFSecurity]

Thanks Ray. No, you did not duplicate others. Besides even if it overlaps to some degree, having even slightly different views of a subject almost always helps. You know how when one person explains something you don't always get it but then someone else uses a slightly different approach to explain the subject and the light bulb turns on.

Best,

Allen