I ..........................................................................................................................................................

mím

TeleTrac V2.2I 14 Sep 92 12:38

 u LL'J H u í I ]'ri 1 1 1 11 1 i 1 11 1 11 i M J J1 1 1 n TTTTTTTrriTTTTTITTTrTTTTnTTTTT rĩTTTrnTTTTTTT
1 1 1 1 1 1 ) 1 I' 1 1 1 1 i I. MI r I i'| TrrTTTTTT
CSFll i||l 10 J1 neH' M J1 neẵ....‘' "Ẽ'1"75
■íf 0Ỗ‘
LỊỄỊỊ^I^ rr

■
. ..................................................................—17~ ....§T7Èi0iÌ-

.......'.4,.,,........r.Ịihr,..........liliL,. .....................................,
1
I T&i-y' -
IIII111111111IIIIIII11 11111111 111! IIII 11rmrrTT
H 1111111111 M
1
I "" 111 1111 1111 " I """"" 1111! IIIIII111
11III111 n 11IIIIII11111! m 11 n 111111111II
Ũ lỊỤTí 7TỊjnTTT7TTTỰTTnT7TITf ỰTTTrnTTTTn ỰTjTTTTn nTTTTrrrrTTTTTTTrrTTTTTn TTTĨ
ĨTTTTTTTTT7TĨTTTTTTTTT7TTTTÍT
"
1 TT
■ hi Jine lo_l ine
r PMfrr
hJ^ ..........ii
á Ễ mI ---p-w.ll I
.. L ---ì
..
LỊ. [ y [ ụ
...
1‘ ị.ptbLliL-
H
Ị.r!-

I|
; LL! U-LLLi m M N ' M I mLLU_LUJJ M H L^U-LLLLLLLLLI LLLUU-U.U-Ll-U !
H"|| í I I I I ' " " HL! 'LIl l M ' U-M.i.m LU
I 1 I 1 ! I rn ;■ I I I ILau. TTTTT
mMI]I
n Ti rn m n i ĨTTĨT m
HMIII!ĩ H 1'II
|
TTTTT rrrnTnri n
rsii4 tòa9rsii4 ■n rt J
1111,1UJIli
I., 11I I, rĩ ■
Ị n eMaíSirêíM ........................................Á..........A...............
Ạ~"'- Ị \ :
P:! IL ụ.„ II /ị f\ M ,^| ,1 /X~------ịrS
R
ỉ\ >J\ ----------------------------------------■
........................................................£rir8ẽ:
_ 'I w 7 r//f\ ỴỴỵp
jt ..ỳ
Y“J......................................^.................ỷi................/iilCr^|TrrJÍiÌTj[3r.................nỵ......r.,jỊ... i.........
r - Ỵ Ỷ ...............>—rm7 ~
n 1ì 1. \ ỉ 7 NS \ J " \ À.--' "
r
....1................... )&$ò£. 1_..................................,!i
s
U-LLLU LLLLLLLLLU

ỊJan
-
Feb Hap ỊApr May Jun Jul
^
ì
 'Mi: ÍT: M 11 1 ỉ M h ! 1 1 111
lim" 1 M 1 M I 1 1 1 1 ------------------------
_

/\ y ■
rrp-vvrụr^TTTrr TTrrĩTrTTTTTiTrTTTTTTTTTT TTTTTTrrTTTrrTTTTTTĩ Ị
;d signẫỉ TT ? .
1. . . .l- -1 • V . / .........1.....QSII
r
»' ......... ...............................
\ / *
/■'
-

T
■ . ■ * ■ ..■ỉ1’* ■
.r .....
áraa:
i.......... .. ................_.......
:
u
M...............AT/ ...................................
....■■UU""""...................—k..............f—1/ựí’-”
\r

M H Ju Sep Noụ H Ha M Se Ho ụ Hai' ỊMay Jul Sep 13

ar a l jan ap y p ỊJan

eleTrac V2.2I 16 Sep 92 09:31

TeleTrac V2.2I 16 Sep 92 09:35
 ỉ LULLl LLLLLU LLLLLLLLL I rrrn ĩ
IVÍVI TTriTnTTTTTTTTĨT. n ĨTTTTrrrnTTn 7 I rrr rrHTrrTTTTÍTÍTT ĨTTTTi rrrrĩ) HTTT77T
TrrrrTTTTTTr
TTTHacd. S.Ỉ ẩỊỊal......r rTTTTTTTTrrrĩTTTTTTTTTTTĩ ■■0r02
ỉ_\.. .... .7......
"
.......................7., m.. .7* .7...... a" ■ ' "«
Ị| '•-iu-uuwỊ'T‘Y"r"*.. .......
'Mi-

/*"
V . . .........

■0r01-
|

lj.J ! I M M ! M l.Ị ! l-Ll-U

1 1
I ! u HIU ) ■» ! ! u !.l II I !! íl I M I I I

Ma ỊApr- Hãy |Jun Jul Se

r p
TeleTrac V2.21 16 Sep 92 09:39

-
1
 \

o
Hi
_

<
H
)

pj
Q

M
M
3

M
M

(-D
in
(D
(D

cn

'Ì5
H

10
N3
N3
(1

vf=
if=-
TTTiinưỉTiTiTOimĩiiiiiìiiiiiímwihwiiiiiiJiiiiiiìiiriiffiT^CT
Ịì?Ui5ĩ5 poSM;
*
 GLOSSARY

2-5 DAY PERIOD - Most signiíicant time period for a divergence or a positive or negative reversal to occur. On a
Bullìsh Divergence, prìce will be lower and RSI hìgher than initial momentnm low or " X " day. On a Bearish
Divergence, price will be higher but RSI loAver than initial momentum peak or " X " day.

45 DEGREE ANGLE - Trendline establisheđ usually on price highs or lows on a bar chart to be used as a resistance line
( off highs as a downtrend ) or as a support line ( off lows as an uptrend line ). With RSI, it can be drawn down off ạ
momentumJạigh or drạvviỊgip..^ •e--' -- : otba'Trromentnní Ixn-vtrốYíivérgence isìoeìng ĩormed, and' also off the point
at which RSI íorms the divergence. Can also be đrawn írom or off either a positive or negative reversal point.

60 - 20 - RSI range for dovratrends. Overboxight is reached in the 60-65 area and oversold is reached at the 25-20 area.

80 - 40 - RSI range for upirends. Overbought is reached in the 75-80 area and oversold is reached atthe 40-55 area.

BEARISPI DIVERGENCE - Price makinghigher highs and RSI tails to make new highs.
RSĨ does not conỉirm move to new high close in price by making a higher high in RSI value than
prcvious momentum high.

BOTTOM TOP NEGATTVE REVERSAL - When a previous close price level which was a momentum low and support
becomes resistance at a new RSI peak which forms a negative reversal pattern. AI1 aspects of a negative
reversal apply here, speciíicallv pertainingto moving averages of RSI and close price.

BOTTQM TOP RESISTANCE - Pre\dous Close Price support level becomes new close price resistance level. What was
snpport becomes resistance. What was a bottom becomes a top.

BULLISH DIVERGENCE - Price making lower lows and RSI íails to make newlows. RSI does not contìrin rnove to
new low close in price by making a lower lows in RSI value than the previous momentum low.

BULLISH SENTIMENT - Usually the percentage of advisors who are Bullish and expect higher prices. High readings
are indicative of and usuallv preeede a market top, low readings usnally precede a market hottom.

COMPLEX DPGERGENCE - One of many complex patterns which inclnde double

divergence, multiple divergence or hidden signál divergence. Usually a divergence pattern which is not
a simple or "clean" 2 - 5 period signal. Most otten develops at inlermediate and major turning points
ortrend changes.
 SS^SSỈ Í Ĩ S^SSSS

COUNT (THE) - The number (#) of pẹriods showing to develop a reversal pattern
( divergence, poKÍtive or negative reversal ) or complete a bottoming or topping ĩormation.

CROSSOVER - Usually applies to moving averages where the shorter term moving average of RSI or đose price
crosses above or below the longer terín moving average.

DAILY RSI - RSI value calculated on daily đose price, plotted on a daily basis.
DECLINING TOP FORMATION DIVERGENCE - Topping action when market
continues to make higher highs and closes, yet RSI íails to coníirm by goìng to higher highs and starts to make
lower highs. RSI shows multiple bearish divergences as prices continue to make higher highs and higher
closes. Usually develops in distribution phase as market trend is sideways to up.

DIVERGENCE - RSI mornentum not conĩirming price action by going to new high or low as price goes to new high or
low.

DOUBLE DIVERGENCE - Usually a part of a double complex divergence pattern where the íirst divergence is
followeđ by a second.

ENHANCED SIGNAL - Relatedto divergence or positive/negative reversals. Moving

Averages of RSI and close price do conỉirm ( point ìn the same direction) the signal pattern.

EAĨLURE SWING - Applies to swings in RSI momentum. When a divexgence is created,

( bullish/bearish ) or a positive or negative íormed which is outside the optimal time period.

HIDDEN SIGNAL - A 2 - 5 period signal which develops aíter a divergence or a

momentum low or lúgh which is not readily discernible as a simple divergence.

HOLIRLY RSI - RSI value calculaled on the hourly closing price.

HOMENTUM FAILURE - Loss oi' raomentum when RSI and price both Httempt intradav
(intra^period ) to make a. new high (low ) close but fail to do so.

MOMENTUM HIGH - New high RSI value and pricc ( short, intermediate, longterm ). l’he RSI point on which a
bearish divergence signal patlern could start to develop.
( See also " X " Day and " The Count").

MOMENTUM LOW - New low RSI value and price ( short, intermediate, longterm ).
The RSI point 011 which a bullish divergence signal pattern could startto develop.
( See also " X " Day and "The Count" ).

MULTIPLE DIVERGENCE - VvTien a simple divergence is followed immediately by a second or

third simple divergence or a complex divergence.

"N" PERIOD SIGNAL - Number of periods ĩrom the " X " ( period ) to wliich a signal or
pahern is íormed or completed. Also reĩerred to as " The Count

G' 1992 Car dw e{ | Pi nanci al Gr oup. I nc. 7 b-3

NAKED SIGNAL - Related to đivergence or positive / negative reversals . Moving averages of RSI and close price do
not conĩirm ( point in the same direction ) the signal pattern.

NEGATIVE REVERSAL - RSI rnakes a higher high yet price is lower than at a previous
level. Moving averages of RSI should be negative. Moving averages of close price should be negative. RSI
maintaìning downtrend by reaching over-bought in the 60 - 65 area and oversolđ in the 25 - 20 area. Time
cycle is due for a high. RSI finds Resistance at price levels that were previouslv oversold, support or a
previous bottom. A 50% retracement of pre\dous high close and new low close.

OVERBOUGHT/OVERSOLD POSITIVE REVERSAL - When price levels which were overbought

( momentum high ) become oversold ( momentum lows ) and RSI đevelops a positìve reversal pattern. Similar to a top
bottom positive reversal but ditĩerent in that the time between the momentum high and low can be weeks or . . ì-
meỹnths-apartvVery-helpĩưỉ íór dr'ầwing'ĩữn'gíổr"tórtii' !ipósitĩve’’févèfsáí'treúdĩìhò's!

OVERSOLD/OVERBOUGHT NEGATIVE REVERSAL - When price levels which were oversold

( momentum low ) become overbought ( momentum highs ) and RSI develops a negative reversal pattern.
Similiãr to a bottom top negative reversal but ditĩerent in that the time ỉrame between the momentum low
and high can be weeks or months apart.
Very helpíul for drawing longer term negative reversal trendlines.

PERIODS - Number ( # ) of closes ( weeks, davs, hours, etc. ) included in the calculations of the RSI values. The
nuinber ( # ) of periods which form a signal pattern.

POSITIVE/NEGATIVE REVERSAL TARGET FAILURE - When the targeted price levels suggested by a
positive or negative reversal pattern are achieved intra-perìod but not at the close of that period.

POSĩTIVE REVERSAL - RSI makes lower ]ow yet price is higher than at a previous level
where RSI was greater. Moving averages of RSI should be positìve. Moving averages of closing prices should
be positive. RSI is maintaining uptrend by reaching oversold in the 40 - 55 area and overbought in the 70 - 80
area. Time cycle is dne for a low. RSI tinds support at price levels that were previous tops ánd overbought. A
50% retracement of pre\dous ]ow close and newhinh close was achieved.

PRICE CYCLE - Range of high and low divided by 8 or 5 to get l/8th and l/5rd, points of retroxement, to determìne
íuture sunport and reKÍstance levels.

RETRACEMENT - Atter a run up / down in price protit taking takes place and prices pullback or correct
back down / up a certain percentage of the amount of the run up / down in price. Usually 1/3, 1 /2
or 5/8 are the most common percentages for the correction.

REVERSAL - Trend change trom down to up, or up to đown.

RISING BOTTOM FORMATION ( DIVERGENCE ) - Basing action when market continues to rnake lower
lows and closes, yet RSI íails to coníirm by going to lower levels and starts to make slightly higher bottoms.
RSI shows multiple bullish divergences as prices continue to make lower lows and lower closes. Usually
develops in accumulation phase as market trend is sideways to down.

RSI ( RELATIVE STRENGTH INDEX ) - Momentum oscillator or indicator which measures price change and
the average degree and velocity of directional price movement and change over "x" number of periods. A
ratio of the average amount UP đivideđ by the average amount DOVdN over " X " number of perìods.

RSI MOVING AVERAGES - Moving averages calculated on the RSI values usually a 9 . ,đa,y, simple and 45
đav*weighteđ. Verv helpíul l'or trentì’a;rialysis'with'crd'Ssovéi' óf ■ the 9 above or below the 45. Used on weekly basis
íor the Weekly RSI. Most helpíul for deterrniníng short, intermediate and longer term overbought and oversolđ
extremes in RSI when the moving averages are above 70 or below 50.

RSI SPIKE - Sharp inove by RSI ĩorrning a positive, negative reversal, or a momentum high or low. ( point on trend
analysis checklist).

SIGNAL EXTENSION - When the period count extends beyond 5 to 6, or 7, 8 or 9 periods lo complete a
divergence, positive or negative reversa.l pattern. Can also be pa.rt of a complex divergence pattern, or a
đouble divergence.

STAIRSTEP - Gradual rate of ascent ( decent) in RSI value without torming a divergence prior to its move up ( down
). Usuallv develops from a inomentum low ( high ).

TIME CYCLE - Time period measuređ usually from low to high or high to low.

TOP/BOTTOM POSITIVE REVERSAL - When a previous close price level which was a rnomentum high and
resistance becomes support at a new momentum low and íorms a positive reversal. All aspects of a positive
reversal apply here, speciĩically pertaining to iTiovin^ avera^pc: nf RSĩ clos6 pricp.

TOP/BOTTOM SUPPORT - Previous Close Price resistance level become.s new close
price support level. Wliat was resistance becomes snoDort or, what was a top becomes a bottom.

TREND CHANGE - A positive reversal ( conhrmed, enhanced ) in a downtrend. A negative reversal ( contirmed,
enhanced ) in an uptrenđ.

"X" DAY - Momentum Low or High, Day ( period ) on which the number oí periods of the count is started from
orbased on. ( 2, 3, 4, 5 periods, etc. ).

WEEKLY RSI - RSI value calculated 011 the week to week change in price ( Priday close to Friday dose ) and
plotteđ on Friday. Perpetual contracts are best as they do not expire. Ideal for interpreting trend on an
interinediate to longterm perspective.