Kind Words from Terry Laundry, Founder of T Theory

"Parker has sent me what I consider to be the most important refinements to T Theory I have ever received from anyone in an e-mail . . . which he calls Tweaking the 13th Advance Decline T." September 29, 2010

"Parker has sent me a very interesting concept which is the NY Advance Decline line divided by the put-call ratio . . . What he's done is introduce the idea of sentiment." September 15, 2010

"Parker discovered the Money Flow Ts . . . This is something like the Holy Grail in T Theory. You are always looking for something that will help you refine the peak date." October 17, 201

"Money Flow Ts are probably the greatest new thing I have seen in 20 years in terms of time symmetries." December 5, 2010.

Thursday, September 9, 2010

$$ A Unique Momentum Oscillator

The Advance Decline line has been around forever, as has the CBOE Put-Call ratio.  I divide the AD line by the Put-Call ratio to get a momentum oscillator that provides excellent bullish and bearish divergence signals (for when trends are about the change) as well as positive and negative reversal signals (for when trends are about to continue).


As an example of the latter, compare how the higher momentum peak in the mid-June rally vs. the mid-May rally was unable to produce a higher high in price in June, thus signifying the downtrend was strong and about to continue.
























Edit - Terry Laundry published my Advance-Decline momentum oscillator in his September 15, 2010 post at the T Theory Foundation site.  He had some nice things to say about my oscillator in his audio comments as well. 
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