The Morrisian Indicator

In just 3 days I start talking about my indicator and the way certain securities that I mentioned yesterday are affected.  The reason it will take 3 more days has to do with the way my indicator is calculated.  I need at least 30 trading days worth of data till I start subtracting the results of data 31 days ago and divide that figure by fifteen to come up with my final result that is plotted on a chart.

I will not go into anymore detail than this as to how my indicator is calculated.  This is both to protect the proprietary nature of my indicator and to not bore readers of this blog silly.  I think it makes sense to describe the chart on which my indicator is plotted.  I plot it on graph paper.  I draw a line down the center of the graph paper lengthwise and I draw another line down the far left side of the graph paper from top to bottom, leaving only about 3 rows of blocks to the right of the line.  Going from the center line of my graph up using the up/down line I mark each new block increment with a positive multiple of .2.  The series goes from .2 to .4 to .6 to .8 to a whole number starting at 1 and going up to 3 positive.

The same proceedure is done from the center line down using negative decimals and integers that are multiples of .2-.  So the entire chart goes from a positive 3 at the highest to a negative 3 at the lowest.  When a security plots above the centerline the security should be moving in an upward trend.  When a security plots below the centerline it should be generally going down.  When an indicator line through my plotpoints crosses the centerline from below to above or from above to  below this could constitute a signal.  When I talk about a plot point I will say something like this.  The security CBG plots at .47 above the centerline.

When a security plots with especially heavy volume I will say something like the securityh AMD with .8 with a positive asterisk.  Securities that move down on heavy volume will be said to do so with a negative asterisk.  The asterisk in this case is below the plot point as opposed to above.  This is all very boring stuff.  What isn’t boring is the potential to make money using this indicator.  When I talk about this indicator giving a signal I will discuss the strategy for using that signal to make money taking into account what ones potential stop loss should be and where one should seek to enter a position taking maximum advantage of the signal.  Tomorrow I will further discuss this indicator and the beginnings of my own personal trading that will take shape using this signal.

 

EC Morris

The Morrisian Indicator

This Blog is meant to be a financial services blog in which I will discuss my indicator that I developed and call the Morrisian Indicator after my last name ‘Morris.’  Because this Indicator is not coded, I will be doing by hand and applying to a list of 20 securities.  Eventually I will get a developer to make a plug-in out of it so that it may be used with any set of securities that one wishes to follow.  I will use this indicator as a part of my investment plan which I intend to discuss and develop within the context of this blog.  I will be following 20 securities with my indicator for now.  The symbols for these securities are: AKS, AMD, CBG, CIE, CX, DNR, EXEL, FCX, GNW, MPC, MRO, MS, MT, MTW, NBR, OAS, ODP, PBR, SDRL, & TCK.  After only 3 more trading days I will begin plotting the Morrisian Indicator for all of the above mentioned securites.  I will invite anyone who wishes to, to follow along as I point out when this indicator is signally a buy or short sell of a particular security or perhaps the purchase of call or puts based on these securities.  Options are available for all of these securities.

I will not be discussing the inner workings of my indicator but I will discuss what it looks like and how the indicator gives a signal, at least until I can get the Indicator professionally developed as a plug-in.  When I see that the indicator is indicating a long or short position on something, I will explain how this is the case.

 

EC Morris