Replies to post #30219 on A.I.M. Users Bulletin Board (AIMUSERS)

[SFSecurity]

vWave calculation...

I suggest one minor correction to the description in #30219 of the vWave and one addition. You say:

Hi Glen, RE: Calculating the v-Wave...................

The "old" vWave was determined with the following:

Value Line Appreciation Potential (weekly from Value Line's "Summary and Index" Section.

1) Divide the VLAP by 2.34 (the highest VLAP on record was 234%)

2) Subtract #1 from 100 to get the "old" VW.

3) Multiply #2 times 0.73175 to get the "new" VW. (snip)

I kept trying that and getting the wrong number. After beating my head against the wall a bit I finally tried the VLAP as a whole number (35) rather than as a decimal percentage (0.35) which was what was done with the historical high of 234% or 2.34. That change worked! So I suggest that line #1 be rephrased to:

1) Divide the VALP taken as a whole number, dropping the % sign, by 2.34 (the highest VLAP on record was 234%)

Then I would change #3 to read:

3) Multiply #2 times 0.73175 to get the "new" stock investment VW.

Then I would add one more step:

4) 3) Multiply #3 times 0.66666 to get the "new" mutual fund VW.

But I still can't figure out what the "Oscillator" is or how it is calculated. Pointers?

Thanks,

Allen

[SFSecurity]

Hi Tom, In calculating the V-Wave I see it uses 50% cash as the basis. What is the formula if one wants to use other than a 50% cash position?