Forum Archive Index - May 2002

[Phaedrus <Phaedrus@techemail.com>]

 This chart shows TRH with four indicators - Trendlines, Williams'%R, parabolic 
Stop and Reverse and an Adaptive Exponential Moving Average.
 In the STANZ Newsletter posted on Sharechat 12/4/02, there was an article on 
moving averages by Victor Jowsey. Mention was made of an Adaptive EMA, and the 
formula given. This type of Exponential Moving Average does not have a set 
period, rather, the period is continuously varied - the greater the volatility, 
the longer the period used. 
 I have not much favoured the use of moving averages, finding them too slow to 
respond to fast-moving price changes. The adaptive EMA appears to overcome that 
objection very effectively. It is plotted in magenta on the attached chart.
 You can see that in the past these four indicators have worked well together 
with this stock, triggering buy or sell signals within a few cents and within a 
few days of each other, providing good confirmation. Note that at the close 
today ($3.85, Wednesday 1/5/02) while the SAR, the Adaptive EMA, and the 
Williams'%R have triggered buy signals, the price action has yet to break the 
current trendline.
 Todays candlestick is a Marubozu, where the Open is the Low for the day, and 
the Close is at the High for the day. Buyers were firmly in control all day. 
The last three days candlesticks are a Morning Star formation. These often mark 
the end of a downtrend. Volume is rising. These all have bullish implications.

            Phaedrus.

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