DollarLink News -- November 30, 1995

Enhancements Added

Regression Lines

DollarLink can now draw regression lines over a price chart. The chart can be either bar chart or tick-by-tick line chart.

A regression line is a statistical concept. It is a straight line between a series of data points such that the sum of deviations of all data points from the line is the minimum. In technical analysis, the regression line typically represents a trend line that incorporates the effect of all price data.

Basically, it is a way of drawing a trendline that is more accurate than doing it by eyeballing the underlying price data.

To use this feature, press DDR (Data, Draw, Regression) while in graphics mode.

If the underlying chart is a line chart, DollarLink will ask you for a time period that the regression line will span. For example, if you say 30 minutes, then the regression line will be computed based on the data in the last 30 minutes of price quotes.

If the underlying chart is a bar chart, DollarLink will ask you for the number of bars to use in its calculation of the regression line. If the chart is a historic bar chart (i.e., if it spans more than one day of price history), then DollarLink will ask you if you want to compute the regression line based on either the opens or the highs or the lows or the lasts or the averages of open-high-low-close.

After you choose the color for the line, DollarLink draws the line and asks you if you want to move it (with the option of keeping the original line) elsewhere on the chart but always parallel to the original line. This is a handy way of creating a channel representation with these regression lines.

After the line is drawn, DollarLink considers it just like any other straight line that you might draw: it is remembered and can be recalled at any time by pressing the F4 key.

Whenever you recall this regression line, keep in mind that it is redrawn based on its slope and intercept at the time it was first drawn. In other words, it may not correspond to the regression line at recall time because the price chart may now have additional bars or ticks on it. To see a regression line that reflects the latest price bars, you should go through the DDR sequence, which is easy enough.

You can also set an alarm on this trend line so that it becomes a live trend line: DollarLink alerts you whenever the price chart penetrates the line from either above or below.

Change Interest Rates on the Fly

You can now change interest rates without having to go out of DollarLink. This feature is used mostly in calculations of theoretical option prices. It is interesting -- and instructive -- to see the large effect interest rates have on option prices.

To use this feature, in text mode press CSI (Control, Settings, Interest rates). DollarLink will then prompt you for the new rate value.

Ho Ho Holiday Schedule

DollarLink Software will be closed Christmas Day and New Year's Day. We will also be closed December 26th through 29th. However, for emergency questions only, you can still call us and we will try to help you.

DollarLink Software wishes you

a fun-filled holiday season and a wonderful and prosperous New Year!

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