INFORMATION AND MANUAL: IT IS IMPERATIVE THAT YOU READ THIS ENTIRE FILE  
                        TO USE THE INDICATOR PROPERLY.
  
  =================== TICKTRAC Version 1.0 ========================

TICKTRAC is distributed under the Shareware concept which means that
you do not have to pay for it. You may make as many copies as you
want, and distribute it as you wish as long as it includes this 'README'
file unaltered. If you find the program useful, you are asked to make 
a donation of $10.00 to the author. This is to help compensate the author 
for time spent on programming of this and any future versions of TICKTRAC, 
and to encourage the development of additional programs.
                   
                   
  ===================== LIMITED WARRANTY =========================

THIS PROGRAM IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER  
EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES 
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO  
DEFECTS IN THE PROGRAM OR DOCUMENTATION. THE AUTHOR ASSUMES NO RISK AS TO 
QUALITY AND PERFORMANCE OF THE PROGRAM. SHOULD THE PROGRAM  PROVE  DEFECTIVE,  
YOU ASSUME THE ENTIRE COST OF ANY LOSS OF PROFIT OR ANY OTHER COMMERCIAL 
DAMAGE. SOME STATES DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES SO THE 
ABOVE EXCLUSION MAY NOT APPLY TO YOU. THIS STATEMENT SHALL BE CONSTRUED,  
INTERPRETED, AND GOVERNED BY THE LAWS OF THE STATE OF OREGON.

THE ENTIRETY OF THIS PROGRAM IS BELIEVED, BY THE AUTHOR, TO BE RELIABLE 
BUT IS NOT GUARANTEED. IN ADDITION, THIS PROGRAM WAS MADE WITH NO INTENTION
OF INFRINGING ON ANY TRADEMARK OR COPYRIGHT LAWS.

  
  ===================== IMPORTANT NOTES =========================

NO INVESTOR SHOULD USE ANY ONE INDICATOR TO MAKE INVESTMENT DECISIONS.
THIS PROGRAM WAS INTENDED TO BE USED AS ONE TOOL IN A BOX OF MANY. USERS
ARE ENCOURAGED TO VERIFY THE VALIDITY OF THE RESULTS OUTPUT BY THIS PROGRAM
USING THE INFORMATION THAT FOLLOWS. TICKTRAC WAS INTENDED AS A SHORT-TERM
MARKET INDICATOR.
*************************************************************************
*     INVESTING IN SECURITIES MAY NOT BE SUITABLE FOR EVERYONE.         *
*************************************************************************


-------------------------------------------------------------------------

-- ABOUT THE PROGRAM --
TICKTRAC is intended as a short-term market indicator. It is based on the
closing value of the New York Stock Exchange Tick Indicator.

-- HOW IT WORKS --
To run the program:  type  TICKTRAC  at the prompt of the directory that
                     contains the TICKTRAC.EXE file.   
                    
When you run the program the menu has three options:  1) Update Data
                                                      2) Show Evaluation
                                                      3) Print Output
                                                      4) Exit

Update Data: Choosing 1 at the menu will cause the computer to prompt you
             for the date of the closing NYSE Tick that you are going to 
             enter. The date must be input in the format specified.(++ See 
             notes at end of this section.) Once you have entered the date 
             the computer will prompt you for the closing NYSE Tick for the 
             date that you just entered. This information is appended to 
             the TICK.PRN file. Enter either 'E' or 'e' to end inputting 
             data. NOTE: This program requires a minimum of 28 days worth
                         of data to function properly.

             ++ If you use one of the many satellite, cable, or dial-up
                data services, the following specifications apply:
                1) The file must be named "TICK.PRN"
                2) The file must be located in the same directory as the
                   TICKTRAC.EXE file.
                3) The date may be in any format as long as it is less than
                   11 characters.
                4) The data must be in an ascii, space-delimited format:
                     Date_Any_Format     Closing_Tick
                     Date_Any_Format     Closing_Tick
                         etc...             etc...
             ++ The author is familiar with several data services and the
                software used with them. If you have questions regarding
                how a particular service or software might work with this 
                program, then see the end of this document on how you might 
                get help.

Show Evaluation: Choosing number 2 at the menu causes the program to calculate
                 the indicator as follows:
                 
                 A) A 10-day simple moving average of the Tick is calculated 
                    by adding together the last 10 ticks and dividing by 10.
                    (Further referred to as S_MV_AVG.)
                 B) A 10-day exponential moving average is calculated using
                    the 10-day simple moving average as follows:
                    (Further referred to as E_MV_AVG.)
       
       ((.182 * (Todays_Tick - Yesterdays S_MV_AVG)) + Yesterdays S_MV_AVG)

                 
                 C) After five days, compare todays tick with yesterdays 
                    E_MV_AVG. If:
                    1) Todays_Tick > Yesterdays E_MV_AVG then give todays 
                         reading a +1.
                    2) Todays_Tick < Yesterdays E_MV_AVG then give todays 
                         reading a -1.
                    3) Todays_Tick = Yesterdays E_MV_AVG then give todays 
                         reading a 0.
                     
                    Keep a running total of the +1s, 0s and -1s. This is the    
                    'on_balance_tick_line'.
                 D) After six days, calculate the five_day_momentum by sub-
                    tracting the value on the on_balance_tick_line five days
                    ago from the on_balance_tick_line of today.
                 E) Calculate the 5-day moving average of the five_day_momentum
                    by adding the last five(5) five_day_momentum figures together 
                    and dividing by 5.
                 F) Lastly calculate the indicator:

(.333 * (Todays_five_day_moving_average - Yesterdays_five_day_moving_average))
    + Yesterdays_five_day_moving_average 

                 G) After three days the data is ready to be evaluated.


                 The resulting data is stored in two files. The "OUTPUT"
                 file contains the date, tick and indicator in ascii 
                 format, in the following order:
                  
                  Date   Tick   Indicator
                  etc..  etc..  etc...
                 
                 A second file, "SPRDSHT.FIL", stores only the indicator
                 in an ascii format like below:
                 
                 Indicator
                 Indicator
                  etc...
                 
                 The "SPRDSHT.FIL" is mainly designed for users who wish to
                 import this data into a spreadsheet program for graphing.

The following guidelines apply to the evaluating indicator
as a short term market indicator. If the indicator is:
  1) = or > +2.50 the market may be overbought. Watch for a 
     correction within 4 trading days.
  2) = or < -2.00 the market may be oversold. Watch for a rally
     within 2 trading days.
  3) Between +2.50 and -2.00 then the markets are neutral.

Print Output: Prints the "OUTPUT" file to your printer.
              You can view the OUTPUT file on the screen in several ways:
              A) In any ascii text editor.
              B) If you have MS-DOS 5.0 or higher you can use the MS-DOS
                 editor by typing -> EDIT OUTPUT <- at the prompt of the  
                 directory which contains the OUPUT file. (Remember that
                 any changes made to the file while in the MS-DOS Editor
                 can be saved and alter the file permanently.)
              C) Also, in DOS you can use -> TYPE OUTPUT | MORE <- at the 
                 prompt of the directory which contains the OUTPUT file.

Exit: Exits the program. (All information entered or calculated is saved any 
      time you are at the menu.)
-----------------------------------------------------------------------------

To make a donation or seek further information or assistance write to:
      Ticktrac 
      5005 S.W. Murray  
      Suite 704
      Beaverton, Or. 97005

(Donations are not required to get additional information or assistance.) 




