RTC vs DMA

[MR]

The "End Bar" is a useful selection in the RTC menu that allows you to have a visual reference or reminder of where the ending calculation is on the RTC. For example, say you are calculating the early stages of a new sequence using the RTC tool. By turning "On" the "end bar" you will see a vertical line in that RTC. You also have the option to change this identification point to any color you select. Later, if you want to recalculate a new RTC based on current action, you now will have a reminder of where those RTC's calculations were taken from. This is also a useful feature when you are using multiple Regression Trend Channel lines when interpreting price action.

[MR]

The "Pearson's R" On/Off button indicates if the Pearson's value will be shown at the end of the Regression Trend Channel. Showing Pearson's value helps identify the "slope" in the price movement.

[MR]

As the Pearson's R value gets closer to the value of 1, the calculated trend line is matching the actual value of the data. In most instances a very high Pearson's value will be identifying the desirable "single slope" price movement we should be monitoring for as Advanced GET users. This means that the regression line is "fitting" the trend very well.

[MR]

As the Pearson's R value gets closer to the value of 0, the trend line is doing a poor job at matching the data action. This means that the regression line does not "fit" the trend very well.

[MR]

Low Pearson's values may still be useful if you want to help identify the potential outer ranges of price movements in a non-trending market, or wider swing movements.

[MR]

Think of the "Pearson's R" value as a percentage--

0.900 (90 percent) match is a good fit; while a
0.060 (6 percent) match is very poor.

[MR]

If you use the RTC enough you tend not to use the Pearson's feature because they can help clutter a screen and you can pretty much guess at the "fit" when you see them enough times.

[MR]

The most effective use of the Regression Trend Channel (RTC) would be when a "single sloped" market is identified (in simple terms: when a market that is moving in a very linear manner) to begin to apply the RTC for a potential breakout pattern.

The use of Pearson's helps identify that linear relationship. If a market is "curve fitting" well-- some would say a Pearson's value of 0.90 to 0.93, or greater, is what you want to see for a "tight fit"-- you can now begin to setup for a trade opportunity of the break of channel line in that tight fit.

[MR]

RTC-vs-DMA?: ANSWER To Original Thread Question

As Advanced GET users we want to be monitoring for Elliott Wave Type One and Two Buy or Sell trading opportunities. The question to ask: "Is the Type One or Two pattern moving in a straight line advance or decline, or not?"

If it is, use the RTC to help confirm the trade opportunity.

If the price is not moving in a single slope, then use the 6/4 DMA's to confirm the trade setup.

[MR]

If you were to try to setup a Type 1 Buy setup using either a RTC or a 6/4 DMA Channel, which one of these would you use?

I would try the one that provides the quickest entry, or the best single slope fit....

[MR]

As Advanced GET users we want to be monitoring for Elliott Wave Type One and Two Buy or Sell trading opportunities.

One question to ask: "Is the Type One or Two pattern moving in a straight line advance or decline, or not?"

If it is, use the RTC to help confirm the trade opportunity. If the price is not moving in a single slope, then use the 6/4 DMA's to confirm the trade setup.

[MR]

In a Type One setup the RTC calculation begins at the end of a major Wave Three and should end at the current major Wave Four. (As it also a possiblity one could use the "C" wave of W4 if aggressive, but is more riskier.)

[MR]

In a Type Two setup you want to focus your calculation on the major Wave Four to the current high.

[MR]

It is important to remember you will always increase the probability of success for your trading opportunity when you combine the use of the RTC with other Advanced GET tools, such as the Oscillators, MOB, Ellipse, XTL, and so forth....

[MR]

Before ending, let me share with you a few more ideas you can experiment with if you want to try out new uses of the Regression Trend Channel or 6/4 DMA Channeling techniques....