THE SYMBOLs METHOD

THE SYMBOL'S METHOD

This survey is aimed at answering a myriad of questions we receive in the net, such as:

On what the Symbol is based and where it comes from.

Which are the common point of the System with the Chartism and / or the Elliott waves.

How the IT process knows exactly the point where a graph is situated on the Symbol.

What it means that a graph is located in AB+ or in AB-.

Which are the most habitual points on the Symbol gridlock where we say that a graph is on the verge of starting a rise or a fall.

What it means that a graph goes to the centre of the Diagram.

What the meaning is of the Mitral or Third Force and how it works.

How the System knows if the environment is favourable or non favourable.

We could go on indefinitely with questions like the above, but we consider that this survey may help those more interested in the method of the Symbol , if we establish the logic of it and its general operation and we insert examples illustrated with graphs and diagrams.

For instance, the first question will be automatically answered in the next chapter which is inevitably lengthy.

0.- WHAT IS AND WHAT IS THE SYMBOL FOR .... ?

The Symbol is the name of a powerful EDP application which is at present the only in the world that permits to calculate the forces that act upon a graph or a chart grouping them in the two fundamental components: the Rising or Pushing Up Force and the Falling or Pulling down Force.

If processed data is from equity quotations, the Rising or Pushing – up Force calculated by the EDP system is the force Demand and the Falling or Pulling down force is the force of Supply.

If processed data comes from corporate parameters, the Cash-Flow for example, the rising force calculated by the EDP system is of Sales and the falling force is of Costs.

The key question is. "and what is all this for...?" . This is to obtain four possible futures so that we can scientifically determine the next future and act consequently.

In order to calculate those possible futures, first of all the EDP system calculates the percentage of variation of the values of the chart and then enlarge them towards the future in four different ways:

A.- Construct a new chart reducing the last data in the percentage of variation previously obtained and calculates the Rising and Falling forces of this new chart. This is called FIRST FALL.
B.- Gets back to the initial position and constructs a new chart reducing the last data in twofold the percentage of the variation and calculates again the Rising and Falling forces of this new chart. This is called SECOND FALL.
C.- Gets back to the initial position and constructs a new chart increasing the last data in the percentage of the variation and calculates again the Rising and Falling forces of this new chart. This is called FIRST RISE.
D.- Finally, gets back again back to the initial position and constructs a new chart increasing the last data in twofold the percentage of the variation and calculates again the Rising and Falling forces of this new chart. This is called SECOND RISE.

The information on the four possible futures is obtained by comparison each of the Rising and falling Forces with the same forces of the current chart of reference.

The EDP system consists in two parts: the FINANFOR program, dedicated to the Stock Exchange and included in the Financial Services section, and the CONSULTOR program specially dedicated to companies and included in the Corporate Services section.

In FINANFOR we see that if the graph FIRST RISE of an equity has a Pushing up (Rising) force higher than the present one, this means that if we want the equity rise demand should go up. If we see that the Pulling down (Falling) force of that future chart is lower than the present one, this means that if we want the equity rising, the offer should withdraw.

Knowing this is very important, as a rise in demand is a solid one, but a rise by offer withdrawal is an unstable one.

In the case of CONSULTOR if, for instance, a Cash Flow graph has been processed and the graph of FIRT RISE has a Pushing up force higher than the present one, this means that to increase cash flow we must promote sales. Yet if the Pulling down force of the FIRST RISE graph is lower than the same force of the present graph, to put up cash flow we’ll have to reduce costs.

1.- FIRTS PART. THE BASIS OF SYSTEM’ S OPERATION.

The method of the Symbol is in fact a generalized and scientifically constructed extension of the Diagram of Hamilton which is primarily used in the analysis of stock exchange equities. Consequently, to understand in full the bases of how it works it is better to start from this Diagram.

1.1.- THE DIAGRAM OF HAMILTON. PRESENTATION.

If we look at the definition of Diagram in any advanced dictionary on the Stock Exchange, we will find the following:

System of stock prediction by means of a diagram which displays the possible courses of the "force of money" and the "force of paper".
(This is the definition found, for instance, in the Stock dictionaries MAXBLUE ( www.maxblue.es ) and MYFIBONACCI ( www.myfibonacci.com ).

A System of Stock prediction which, by means of a chart or diagram, represents the possible courses of the money and paper positions.
(This is the definition found, for example, in the Stock dictionaries of JORAMON ( www.joramon.com ) and LASIMON ( www.lasimon.net )

But, What really is Hamilton’s Diagram …?