Hi, I'm sure this is a simple one.

Regarding T2s, specifically T2109 - T2116, do the values returned represent the % of NYSE stocks trading:

• Beyond that channel line (ie T2110 shows % NYSE stocks 1 or more standard deviations above the 40 day PMA), or
• Within that channel line (ie T2110 shows % NYSE stocks trading above the 40 day PMA but by less that 1 standard deviation)

If it's the first one then the stocks that turn up in T2112 would also be counted in T2110. Is that right?

Also what period is the standard deviation taken over (is it the same as the PMA, ie 40 or 200) ?

Jess

Stumped eh?

I have been waiting for a reply from development or data to verify for sure if the T2109 - T2116 actually use standard deviation or if they use the envelope channels from TC2000 version 7. Unfortunately, they actually have to look at the code to find out for sure, so I do not know when I will get that information.

If it actually uses standard deviation, then the period is almost certainly the period of the standard deviation, but TC2000 version 7's envelope channels seem to use far more than the period of the envelope channel in calculating their width. I do not know and have not been (and will not be) able to find out the exact calculations used for TC2000 version 7's envelope channels if it turns they are used instead of standard deviation.

These symbols do use the number of symbols we carry from the NYSE that have been around for at least 1 year that arle beyond the specified channel line (not within that channel). So stocks counted for T2112 are also counted in T2110.

Ah, very helpful Bruce - thanks.

The answer "stocks counted for T2112 are also counted in T2110" is the one I was most keen on. Thank you very much!

Regarding the standard deviation vs envelope channels question, I believe the T2s work on standard deviations. I quote from the worden helpfiles:

"T2109 through T2116 indicate the percentage of stocks trading 1 or 2 channels above or below their moving averages. The channels are envelope channels. One channel is equal to one standard deviation from the moving average and two channels equals 2 standard deviations from the moving average."

I'm happy to assume that the period the standard deviation is taken over is the same as the PMA. Please let me know if development or data say anything different.

Thanks again

Jess

The definition is self contradictory in that it indicates the channels are envelope channels and then later indicates that one channel is equal to one standard deviation from the moving average.

The envelope channels in TC2000 definitely do not use standard deviation in their calculation. I cannot reproduce the envelope channels in TC2000 version 7 and do not know how they are calculated. The envelope channels in TC2000 version 12.3 are based on the percentage above and below the moving average.

The indicator which plots channels at a certain multiple of a standard deviation both above and below a moving average in both programs is called Bollinger Bands.