Frequency Analysis of HON

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From the Update 11/8/2010: The strongest frequency, according to classical frequency analysis, is an oscillation with a length of 10 trading sessions.

Frequency Analysis based on Monthly Comb

HON:  Frequency Analysis based on Monthly Comb

Short term fluctuations that seem to repeat with a regular frequency are often (even generally) seen in stock price charts. Through the years, technicians have expended much effort to measure and exploit these cycles. It would appear simple enough to do a frequency analysis on the time series. But the cycles or periods that seem so easy to see in the price data, have proven to be surprisingly difficult to measure by classical methods. The classical methods apply to stationary cycles of exactly regular period. We can easily remove the trends from historical price data to make the series stationary. However, the fluctuations seen in financial data are almost never exactly periodic, complicating most attempts to take advantage of these cycles.

One factor in the behaviour of market fluctuations is "Anticipation". When speculators detect a cycle in prices, they will buy earlier before the peak, and sell earlier before the dip. This phenomena causes an increase in frequency, and eventually a breakup of the established cycle. Traditional frequency analysis methods such as the Fourier Transform, break down badly attempting to deal with these irregularities.

Wilder estimated that there was an important period of about 28 trading sessions. The half cycle of this period (14 sessions) is a default factor in many of the technical indicators. We have found this to be a reasonable figure, even in today's markets, but there is significant variation between issues. Some companies just seem to have faster or slower cycles for one reason or another, and the indicators may be more accurate when fitted to the situation.

In order to determine the actual frequences in a particular case, we must conduct an new form of analysis that is better suited to deal with the oxymoronic condition of variable length cycles.




General Market Conditions

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More than 70 Hi-Rez charts daily for Honeywell:

Frequency from Monthly Comb Filter
Representative Cycle (Trading Sessions) = 18.00
Sawtooth = 49.03
Peak TypeAvg. CycleMedian CycleCycle ModeCycle Amplitude
High17.4528.0018.009.33 %
Low16.8729.0018.0011.26 %
Recent HighPriceRecent LowPrice Cycle
Thursday, August 26, 201038.7038
Thursday, August 05, 201043.8068
Friday, July 02, 201038.2519
Thursday, April 29, 201047.8570
Monday, June 07, 201039.7182
Tuesday, January 19, 201041.9323
Monday, February 08, 201036.0833
Monday, December 14, 200940.4236


Fourier Transform after Digital Filter M

Cycle LengthFourier Amplitude
100.73
120.60
140.48
180.42
260.37
200.36
230.30
320.24
290.23
360.20
380.17



Frequency Analysis based on Quarterly Comb

HON:  Frequency Analysis based on Quarterly Comb

Frequency from Quarterly Comb Filter
Representative Cycle (Trading Sessions) = 83.00
Sawtooth = 46.84
Peak TypeAvg. CycleMedian CycleCycle ModeCycle Amplitude
High44.0091.0082.0019.00 %
Low48.6372.0055.0018.76 %
Recent HighPriceRecent LowPrice Cycle
Thursday, August 26, 201038.7038
Thursday, April 29, 201047.8570
Friday, July 02, 201038.25101
Tuesday, January 19, 201041.9383
Monday, February 08, 201036.08149
Friday, September 18, 200939.0169
Tuesday, July 07, 200928.2283
Thursday, June 11, 200934.45108


Fourier Transform after Digital Filter Q

Cycle LengthFourier Amplitude
100.39
140.27
260.23
170.22
200.21
320.15
280.14
530.13
800.13
1710.13
360.12



Frequency Analysis based on Yearly Comb

Frequency Analysis based on Yearly Comb of Honeywell

Representative Cycle (Trading Sessions) = 0.00
Sawtooth = 45.05
Peak TypeAvg. CycleMedian CycleCycle ModeCycle Amplitude
High0.000.000.000.00 %
Low0.000.000.000.00 %
Recent HighPriceRecent LowPrice Cycle
Thursday, April 29, 201047.85490
Monday, March 09, 200922.15322
Monday, May 19, 200857.85525
Monday, November 26, 200748.97526
Tuesday, April 18, 200639.26434
Friday, October 21, 200529.20251
Monday, October 25, 200427.73514
Wednesday, July 28, 200432.62575


Fourier Transform on Raw Closing Prices

Cycle LengthFourier Amplitude
6834.96
5123.37
8192.99
4552.03
5851.98
2561.82
3411.76
141.47
3721.19
2731.10
1371.05




Breaking News:

Monday, November 15, 2010: We have news on PG&E Corporation, ticker symbol PCG. A significant moving average event has happened. Also, there are breaking events concerning Cree, Inc. and Abbott Laboratories.

From the News Archive: (11/12/2010 ) A favorable event happened at PetSmart, Inc. Meanwhile, bad news came from Intel, Chesapeake Energy Corporation, and JP Morgan Chase.



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HON




Honeywell












Average Sawtooth based on Monthly Combo

Average Sawtooth based on Monthly Combo of Honeywell

HON




Honeywell









Average Sawtooth based on Bi-weekly Combo

HON:  Average Sawtooth based on Bi-weeklyly Combo



A comparison of the average distance (in time) from each periodic high to to next periodic low, against the distance to the following high point, yields the Sawtooth Statistic. The mid-point, corresponding to a perfect sine wave, is 50 percent. Values less than this indicate the sell slope is steeper than the buy slope, while values over 50 percent show the opposite.

The Sawtooth Statistic gives a clue to the general mood of the markets, functioning as a sort of sentiment indicator. The chart represents the sawtooth percentage of (approximately) monthly cycles over the past year, and of the (approximately) bi-weekly cycles, averaged over the past six months.

.
Semi-Annual Avg. of Bi-weekly Sawtooth Signals at 75 and 25Signaled Appreciation minus non-signaled AppreciationAnnualized %
Buy Signals - 6 instances
Future30SesAvgClose 1.16 % minus 1.96 % = -0.79 %-6.71 %
Future5SesAvgClose 0.40 % minus 0.43 % = -0.03 %-1.64 %
Future2SesAvgClose 0.88 % minus 0.23 % = 0.64 %81.64 %
Sell Signals - 7 instances
Future30SesAvgClose 5.43 % minus 1.96 % = 3.47 %29.39 %
Future5SesAvgClose 2.73 % minus 0.43 % = 2.30 %116.91 %
Future2SesAvgClose 2.49 % minus 0.23 % = 2.25 %286.24 %
.
Semi-Annual Avg. of Bi-weekly Sawtooth Signals middle CrossingSignaled Appreciation minus non-signaled AppreciationAnnualized %
Buy Signals - 60 instances
Future30SesAvgClose 2.33 % minus 1.96 % = 0.38 %3.19 %
Future5SesAvgClose 0.67 % minus 0.43 % = 0.24 %12.28 %
Future2SesAvgClose 0.46 % minus 0.23 % = 0.23 %28.95 %
Sell Signals - 60 instances
Future30SesAvgClose 1.29 % minus 1.96 % = -0.66 %-5.62 %
Future5SesAvgClose 0.10 % minus 0.43 % = -0.33 %-16.86 %
Future2SesAvgClose -0.11 % minus 0.23 % = -0.34 %-43.25 %
.
Semi-Annual Avg. of Bi-weekly Sawtooth Signals at 70 and 30Signaled Appreciation minus non-signaled AppreciationAnnualized %
Buy Signals - 14 instances
Future30SesAvgClose 0.14 % minus 1.96 % = -1.81 %-15.35 %
Future5SesAvgClose -0.77 % minus 0.43 % = -1.20 %-60.99 %
Future2SesAvgClose -0.16 % minus 0.23 % = -0.39 %-50.04 %
Sell Signals - 10 instances
Future30SesAvgClose 4.21 % minus 1.96 % = 2.26 %19.09 %
Future5SesAvgClose 3.50 % minus 0.43 % = 3.07 %155.75 %
Future2SesAvgClose 2.66 % minus 0.23 % = 2.42 %307.74 %
.
Projection of Representative Monthly CycleSignaled Appreciation minus non-signaled AppreciationAnnualized %
Buy Signals - 203 instances
Future30SesAvgClose 1.66 % minus 1.96 % = -0.29 %-2.49 %
Future5SesAvgClose 0.29 % minus 0.43 % = -0.15 %-7.37 %
Future2SesAvgClose -0.06 % minus 0.23 % = -0.29 %-36.76 %
Sell Signals - 229 instances
Future30SesAvgClose 1.35 % minus 1.96 % = -0.60 %-5.10 %
Future5SesAvgClose 0.29 % minus 0.43 % = -0.14 %-7.18 %
Future2SesAvgClose 0.17 % minus 0.23 % = -0.06 %-7.41 %
.
Projection of BiWeekly Modal CyclesSignaled Appreciation minus non-signaled AppreciationAnnualized %
Buy Signals - 435 instances
Future30SesAvgClose 1.69 % minus 1.96 % = -0.27 %-2.29 %
Future5SesAvgClose 0.24 % minus 0.43 % = -0.19 %-9.45 %
Future2SesAvgClose 0.11 % minus 0.23 % = -0.13 %-15.98 %
Sell Signals - 462 instances
Future30SesAvgClose 1.53 % minus 1.96 % = -0.43 %-3.63 %
Future5SesAvgClose 0.36 % minus 0.43 % = -0.07 %-3.77 %
Future2SesAvgClose 0.03 % minus 0.23 % = -0.20 %-26.02 %
.
The best buy signal for 30 future sessions was 0.38 % from the Semi-Annual Avg. of Bi-weekly Sawtooth Signals middle Crossing,and the best sell signal for was -0.66 % from the Semi-Annual Avg. of Bi-weekly Sawtooth Signals middle Crossing.
For 5 future sessions the best buy signal was 0.24 % from the Semi-Annual Avg. of Bi-weekly Sawtooth Signals middle Crossing,and the best sell signal was -0.33 % from the Semi-Annual Avg. of Bi-weekly Sawtooth Signals middle Crossing.
The best buy signal for 2 future sessions was 0.64 % from the Semi-Annual Avg. of Bi-weekly Sawtooth Signals at 75 and 25,and the best sell signal was -0.34 % from the Semi-Annual Avg. of Bi-weekly Sawtooth Signals middle Crossing.



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