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Upon pondering Carolan's concepts, I developed a home-made projection indicator (via Metastock) which gave me chills as to how it could pinpoint turns in the US stock Idx. A key was to correct his table in the back (p155) "Natural Time Days" to weekly (Friday only) data. Using current data of Boolean logic where 1=HHV(H,5days) & -1=LLV(L,5days), and then subtracting a sum of the current "Even Spiral Days" from the current "Odd Spiral Days", Nodal turning points into the future of the data series could be isolated. Projections in different markets carried the same patterns. Major volatility breakouts could be isolated within 3 days. The quality of these patterns was consistent across various markets, but was unusual in that the "indicator" would "compress" to where the smallest turn would lead to the biggest market whop. Thats the poop for the technically inclined... I lost interest in pursuing this when eSignal locked my eyes on all that intraday streaming data.
Upon examining Carolan's comparison of the 1929 & 1987 panics, I believe it impossible for thinking readers to ignore the stunning observations he makes. We like the ocean's tides are quantitatively moved by forces bigger than ourselves. This book is a classic I do not intend to sell. Would love to see others pursue research in this area.
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