[RT] MKT: chart formations

[Clyde Lee <clydelee@xxxxxxxxxx>]

Gary said (among other things)
 
>Clyde, I'll confess to a bit of "discretionary blindness" (?) when it 
>comes to most of the Swing Machine charts you post.  It seems that 
>most of the time the swings could tell almost anything, depending on 

 
Well I guess this is my fault.  I 
thought if I provided
enough examples then things would become 
clearer but reviewing
what I have done on a kind of a piece meal 
approach I can see
where the understanding of SM has not been 
improved.
 
Just a short review:
 
1.  SM is nothing more than STATISTICS 
presented in a graphical
fashion similar to what we are used to 
looking at on a price/time
chart.
 
2.  The statistics are derived by 
detecting all the turning 
points (pivots if you like) for a given 
length of the detection
algorithm and looking at the next 3 legs 
forward of the point
at which the reversal of prices 
occurred.
 
3.  If we plot all the swings that 
have occurred in similar
market conditions we have a big blob of 
lines with (most of the
time) no clear indication of magnitude of 
time and/or price.  So
instead of this then we choose some form of 
averaging to help
us determine the true direction and 
magnitude of the next move.
 
4.  The boxes are nothing more than 
connecting the ends of a set
of projections derived by averaging results 
into 4 groups and
then selecting the two "inside" groups for 
projection.  This is
done by sorting both in price and time and 
then the ends of these
4 projections are used as the limits of the 
"box".
 
The attached picture (which is a full 
screen one unfortunately) 
is a demonstration and discussion of how SM 
swings and boxes
should be interpreted.
 
Clyde Lee
 
 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Clyde 
Lee   
Chairman/CEO          (Home of 
SwingMachine)SYTECH Corporation      
email:   <<A 
href="mailto:clydelee@xxxxxxxxxxxx";>clydelee@xxxxxxxxxxxx> 7910 
Westglen, Suite 
105             
Work:    (713) 783-9540Houston,  TX  
77063            
Fax:     (713) 783-1092    - - - - - - - 
- - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - 
- - - - - - - - - - - - - -To subscribe / unsubscribe from SwingMachine 
list<A 
href="http://www.egroups.com/list/swingmachine/";>http://www.egroups.com/list/swingmachine/ After 
joining list the freeware SwingMachine program (DOS Version) is available in 
the FILES area at:<A 
href="http://www.egroups.com/files/swingmachine/";>http://www.egroups.com/files/swingmachine/- 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 
 
<BLOCKQUOTE 
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
  ----- Original Message ----- 
  <DIV 
  style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
  Gary Fritz 
  To: <A title=realtraders@xxxxxxxxxxx 
  href="mailto:realtraders@xxxxxxxxxxx";>realtraders@xxxxxxxxxxx 
  Sent: Sunday, October 15, 2000 
21:50
  Subject: Re: [RT] MKT: chart 
  formations






eGroups Sponsor




<img width="468" height="60"
  border="0"
  alt=""
  src="http://adimg.egroups.com/img/9660/0/_/152424/_/971707517/WarningHealth468x602E.gif";>









To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxx

Attachment: Description: "junk1.gif"