Traders Insight, Inc.
8 Renwick Avenue
Equipment: DOS machine with 350K+ free RAM, Hercules/CGA/EGA/VGA graphics
Price: $245; one-month demo, $20
Nitty, gritty types of guys will be able to handle Rational Indicators. It's the inevitable — and welcome
— commercialization of Mike Poulos's innovative random walk index ("Of trends and random walks,"
STOCKS & COMMODITIES, February 1991), but it's certainly not a user-cuddling, commercial program yet.
Poulos's nifty analytical technique was to search different lookback periods for price excursions outside
the norm, with the norm defined as the square root of the number of days in the tested lookback period
multiplied by the average daily range. Then he constructed an index by calculating the ratio of the actual
price move over the expected price move for the period with the greatest excursion. Further refinements
included running the numbers for both the highs and the lows as well as running short-term and
long-term random walk indices. This technique, we concluded, was a true analytical advance, well worth
adding to your arsenal.