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Drummond geometry
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Drummond geometry : ウィキペディア英語版
Drummond geometry

Drummond geometry is a trading method consisting of a series of technical analysis tools invented by the Canadian trader Charles Drummond starting in the 1970s and continuing to the present (2010).〔John R. Hill, George Pruitt, "The Ultimate Trading Guide" New York Wiley 2000 ISBN 978-0-471-38135-8〕 The method establishes support and resistance areas in multiple time periods and uses these to determine high probability trading areas.〔David Keller, "Breakthroughs in Technical Analysis; New Thinking from the World's Top Minds", 2007, New York, Bloomberg Press ISBN 978-1-57660-242-3〕
Drummond geometry consists of the following:〔〔Paul Leo and Peter Temple, "The Ultimate Technical Trading Software", 2003, New York, Wiley Publishing, ISBN 978-0-470-82084-1〕
* Short term trend lines based on two bars in various configurations.
* Short term 3-period displaced moving averages.
* An envelope consisting of two trading bands.
* Co-ordination of these elements in three or more time frames.
Typical timeframes vary according to the trader's goal:
Daily, weekly, monthly for swing traders
Daily, Monthly, quarterly and yearly for long-term position traders.
15-minute, hourly, and daily for intraday traders
The usual moving average length for the envelopes and midline is 3-periods.
The method also relies on a moving average based on the "PL Dot". The formula for the PL Dot is the average of the high, low, and close of the last three bars, displaced forward one bar:
(+ Avg(H(2),L(2),C(2)) + Avg(H(3),L(3),C(3)) )/3
"Mapping Future Activity", by Ted Hearne, ChartPoint Magazine (Singapore) March 2002〕
Each completed bar generates a new PL dot and this series of dots form a moving average, which is plotted either as a continuous line or as an individual dot on each bar. Both the dot itself and the moving average formed by the dots are by convention called the "PL Dot."
== Indicators derived from Drummond geometry ==

Indicators developed for the efficient application of P&L charting or Drummond geometry include the assemblage of several P&L lines and levels into groups that represent future support and resistance "zones," which are further classified into "nearby" and "further-out" support and resistance areas.
Other indicators include multiple time period overlays of support and resistance from one time period onto a lower time period, for example from a daily time period onto an hourly chart, or of monthly and weekly overlays onto a daily chart.

抄文引用元・出典: フリー百科事典『 ウィキペディア(Wikipedia)
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