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__________________________________________________________________________________________________   About NEMAC: Equation (1) is the basic NEMA components equation.  It results in several relationships and  indicators which are used in this web site.  The below equations were taken from the reference cited in the "Equations" link.

(1)     NL+LC+NS+SC = V     V = daily volume, contracts, and NL, LC, NS, and SC ≥ 0.  The "Equations" link lists the four component equations and references their background and discovery.        . 

(2)    L = NL-LC        The daily raw long activity equals the difference between the new longs and longs cover values.

(3)    S = NS-SC        The daily raw short activity equals the difference between the new shorts and shorts cover values.

(4)    NB = L-S = NL-LC-NS+SC        The daily net buying or selling where NB<0 indicates net selling.

(5)   cNB = cL-cS     Cumulative net buying equals the difference between cumulative daily longs and cumulative daily shorts.

In equation (1), each of the four NEMA components represents a specific percentage of the day's volume that shows its contribution to the ending price.  The four NEMA components are NL (new longs), LC (longs cover), NS (new shorts), and SC (shorts cover).  These NEMA components are different from the actual total daily buying and selling where the number of longs equals the number of shorts.  The equation for each component gives the number of NEMA contracts and the total of the four equals the magnitude of the volume. 

The basic goal is to generate profitable buy or sell signals for both highly trending and sideways moving prices, as seen on daily charts.  In theory, NEMA indicators should produce observable differences, and signals,  for the two types of markets. 

The "Equations" link has a section titled "Signal Characteristics." Several examples of B/S signals for the different types of market will be shown there.  B/S signals that were wrong will also be included.

For inputs to the webmaster,  email info@NEMAsystem.com