How good is rating technique to predict the Stock Market
THE POWER OF THE RATING MODULE IN THE MARKET TRADER SOFTWARE
by ALPHEE LAVOIE
I’ve mentioned this many time on this group that I would not buy any stock unless I do a rating first. If the rating looks good only then I will spent time analyzing the buy and sell studies. I’ve been working with rating and stock market since 1982. Back then I was using rating more with the Bradley techniques. I also remember how long it took to do a rating because in those days the computers were very slow. In the mid-80s I was introduced to the book “Theory Of Stock Market Forecasting” by Louise Mcwhirters. That opened many new ideas for me. And this is where I sent hours researching and creating models to rate the strength of the stock using its first trade chart.
Last week somebody wrote me wanted to know which chart to use for General Electric. He had two dates May 27th 1926 and the other June 23, 1892.
I calculated both first-rate charts using the rating model from January, 1, 2009 June 1, 2009 . Then I took the real price for the same period of time and superimpose one on the other. The results are shown below. The Red is the rating forecast calculation and the black graph is the real price
As you can see may 26 2009 seems to show better results. So I would use that one to trade GE. I feel that the hundreds of hours that I spent working on this technique was well worth it. In my 45 years in this business I creating and produced quite a few new astrological techniques. I rate this technique as my best accomplishment.
The McWhirter’ book was just republished by the AFA. They are selling it. I wrote the foreword for the new book.