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| APR 1990
SIDEBAR: Correlating made easy
SIDEBAR: Correlating made easy To find the correlation between two technical indicators, first calculate the positive or negative change of the indicator. If you were testing with no ""lagging,"" you'd then compare the first indicator's first change with the other indicator's first change. Utilizing the pencil and paper compartment technique outlined by Clifford Sherry in Stocks & Commodities, this comparison would be tallied in the appropriate ++, -+, +- or -- compartment. (The notations ""++,"" ""-+"" and so on refer to the four possible combinations of changes the two indicators show. If both have positive changes, a tally is made in the ++ compartment. If both fall, a tally is made in the -- compartment.)
by Technical Analysis, Inc.
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