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PAL

When we perform our scans, a considerable amount of data is automatically collected.  We have created a model/algorithm that makes use of the collected data to derive inferences, projections, and probabilities.  The advantage of using a computer-driven algorithm to gather data, conduct tests, and draw conclusions is that it tends to minimize if not completely eliminate human emotions and biases from the process.  Humans often overlook data available to them, or they may underestimate the importance of some data.  We make frequent reference to our model.  Because using the word "model" repeatedly can get tiresome, we have created a name for the model.  Some of the output of our system is generated by Probability-based ALgorithms.  For the sake of brevity and convenience, we therefore sometimes refer to our model/system as PAL.  It is PAL that has been calculating "Intraday Key Levels," resistance levels, Group Pressure Gradients, and probabilities.  No human or system can predict precisely what the markets will do the following day.  That is why PAL uses probability algorithms to draw some of its conclusions.  PAL gathers the basic data it requires each day, then applies numerous algorithms to analyze and interpret the data.  It then generates the report that we display for our visitors.  PAL's report is expressed in a manner that approximates the speech patterns of a human reviewer rather than as a printout of probabilities and statistical data.  

It is important to remember that even when market conditions seem to have clarity and definition, sentiment can change in a moment because of a news event.  The result of sudden shifts in sentiment cannot be predicted, and they may result in market behavior that is completely outside the existing probability envelopes.  News events, by definition, cannot be predicted.  Thus, sudden trend reversals and other unexpected market behavior can occur at any moment of any day. 

PAL sometimes references a specific probability level, such as 80% or 30%.  PAL has been set to estimate behavior patterns at probability levels that are practical for the behavior being measured.  For example, if we were to use a 90% probability level, the envelope of probable excursion would be wide (less focused).  If we were to use a 70% probability level, the envelope of probable excursion would be more narrow (more focused), but then the probability of market behavior actually being contained within that excursion envelope would be less.  We have programmed PAL to use probability levels that give a reasonably good chance that the action being analyzed will actually fall within the predicted range, without the range being so broad that it is of little practical use.  To say, for example, that the average age in a room of 10,000 people has a 100% probability of being between 0 and 150 years is a highly accurate statement but of little use.  To say that the average age in a room of 10,000 people has an 80% probability of being between 35 and 50 years is to provide much more useful information, even though the probability is less certain.


     PAL reports must never be interpreted to be personal recommendations that anybody buy or sell any securities.  Neither we nor PAL ever make personal investment recommendations.  Please read our Terms of Use.     


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