Oscillator Konstruktion.

Delger ett email som kan vara vart for er som ar intresserade av indikatorer och dess tids perioder.

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Mr X very correctly points out that most-but not all--of the power of
oscillators comes from the time measurement one uses. Mr X's comment
regarding the power behind the 7 unit measure in oscillator/indicator
construction is one that I have studied a lot from the mathematical vantage
point and I believe I have the explanation. Its importance requires
understanding fibonacci and sine wave functions.

I have found that most cycles have their roots grounded in fibonacci
numerology. The vast majority of cycles that I've catalogued are the result
of some mathematical manipulation of one or more fibonacci numbers to arrive
at their derivation.

One of the more-dominant cycles in the stock market averages 78.4 weeks /
377 trading days. The last occurrence of this cycle marked the 25-Oct-04L
in the stock market. One seventh of 377 is 53.857 or 54 when rounded off to
a whole number. 54 unit cycles (and its multiples/divisions of 107.7, 27,
and 18) are very common across all time frames. The last 54/108 trading day
(TD) cycle trough occurred on July 7, 2005. By way of example, the time
period between the March 21, 2001 low and the July 7, 2005 low spanned 1077
trading days and contained 10 interations of the 107.7 TD cycle and 20
iterations of the 54 TD cycle. 54 unit cycles, I have found, are normally
comprised of either two 27 unit cycles or three 18 unit cycles. 27 is the
more-common.

Now, for some trig: The stock market (or any market for that matter) can be
modeled quite well as a sine wave function. It's not perfect, but very
close, indeed. I have found none better. If we model the stock market as a
sine wave function, indicators equal to one half of 27 (14) will turn as the
cycle turns, indicators equal to one quarter of 27 (7) will lead the actual
cyclical turn. And that is why the number seven (and 14) works so well in
indicator/oscillator construction. I have been using the 7/14 combination
in my work for years and it works just as theory would predict.