SIDEBAR: RULE PROCESS GENERATION by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...RULE PROCESS GENERATION by Technical Analysis, Inc.
To illustrate how this process of rule generation works, suppose that the exponential moving average,
taken together with the computed direction of the market and today's Standard & Poor's, represents a
potent combination to produce a decision to buy or to sell under trending market conditions (the decision
of which will depend, of course, on the absolute numerical values of those indicators today and yesterday,
and their relative values compared with each other). Two rules, then (actually used in our system), may
semi-automatically be induc...