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Guy,
I prefer "CORRECT" instead of "DISTORT" <G>. I was stationed in
Albuquerque in the early 70s when Richard Arms came out with his book on
"Equivolume Charting". It intuitively made sense to me that the X axis of my
stock charts should be a function of volume instead of the arbitrary trading
day that had been used historically. It just seemed right that for a given
stock, a days move on 10 million shares traded should be given more weight
than a days move on a million shares traded. I've used EquiVolume and now
Candle Volume charts ever since then and I'm not broke yet.
Yes, I still get false breakouts, but like to think they are fewer. Is
the system better? I don't really know. Does it work? Yes! I think the
important thing is to get a system that makes you money that you are
comfortable with and then follow that system rigorously. That's what I'm
doing. Of course, system tweaking is always allowed <G>.
Jim
-----Original Message-----
From: Guy Gordon
Sent: Thursday, May 01, 1997 1:14 AM
To: Jim Greening
Cc: MetaStock-List@xxxxxxxxxxxxx
Subject: Re: ASND
Right you are. The variable width of the Equi-volume and
Candle-Volume charts distorts the date axis. This leads to a slightly
different trendline, and (in this case) an earlier buy.
But is it valid? It worked (<font=3D"envy green"> great </font> this
time, but what about in general?
On Wed, 30 Apr 97 21:20:23 UT, you wrote:
>Guy,
> That explains why we have a slightly different channel. Candle =
Volume=20
>charts, which I use, will give slightly different trend channels due to =
the=20
>variable width of the bars which is a function of volume. They tend to=20
>trigger a little faster than the standard HLC bar charts since they can =
cover=20
>a lot of horizontal distance on a big volume day.
>Jim
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