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| INTRODUCTION Page 1 Page 2 Page 3 Page 4 Page 5 PARAMETERS SECTION 3 SECTION 4 |
In accumulating statistics about the amount of price movement and amount of time to use in projecting the possible path of market prices, the program can simply use ALL swings without regard to any associated pattern. This is done by setting the MatchN to a value of zero (0). A better approach may be to use one or more patterns which occur just before the the turning point of interest in the data to establish a search pattern to examine a sequence of time/price differences which are to be used for projections. For instance, if the last pattern completed on a data set was a 9 pattern, we could specify a MatchN value of one (1) and this would cause the indicator to search the entire list of patterns and whenever we encounter a 9 pattern we would keep the time and price differences for the next leg of price movement which occur AFTER the TURNINGPOINT which is identified with a 9 pattern identification number. This selected price/time differences is then used to project the next time and price zones where a reversal is expected. Now, if we want to increase the reliability of projection then we could search for price/time differences following two specific patterns -- the next higher level of search would be 91 (the last two pattern numbers). In this case a MatchN value of three (3) was tried and even with data going back to 1928 there were an insufficient number of swings detected using the NBars value of 34 to be able to get a valid projection using the GROUPS value of 7 which is what was used in this study.
Although the BLUE projections should have the most reliability insofar as establishing time and price zones for reversals, an examination of the MatchN values of zero and one show that such evaluations can be useful and don't deteriorate significantly from the MatchN value of 2 IN THIS CASE -- every study is something unto itself. CLICK THE Add to Cart Button TO ORDER the |
