The following changes are required in the most recent edition.
| Page | Description |
| 294 | The third bullet on page 294 incorrectly states how column G is calculated. Column G is actually column E divided by column F. The headings at the top of page 292 correctly state how column E is calculated. |
| 343 | The third bullet on this page incorrectly says, 'Next, divide this value by the current value in Column F.' It should say, 'Next, divide this value by the previous value in Column F.' |
The following changes are only required before the sixth printing of the second edition.
| Page | Description | ||||||||||||||||||||||||||||||
| 35 | In the second paragraph, the fourth sentence says, ' ..."Buy" arrows were drawn when the Stochastic Oscillator peaked in overbought territory and "sell" arrows indicate when...' It should say, ' ..." Sell" arrows were drawn when the Stochastic Oscillator peaked in overbought territory and " buy" arrows indicate when... ' The chart shows the buy/sell arrows correctly, but the accompanying text has the terms 'buy' and 'sell' switched. | ||||||||||||||||||||||||||||||
| 106 | In the calculation for the Commodity Channel Index, the fifth bullet multiplies "Column H" by 0.015. It is worth noting that the value 0.015 remains constant regardless of the number of periods in the index. Lambert did this so the index would be in a range closer to +/-100. | ||||||||||||||||||||||||||||||
| 121 | In Figure 71 (at the top of page 121), the text says, ' Sell arrows indicate when -DI falls below +DI.' This is backwards. It should say ' Sell arrows indicate when -DI rises above +DI. ' The buy/sell arrows are drawn correctly and the other statement (regarding buy arrows) is correct. | ||||||||||||||||||||||||||||||
| 130 | In the first sentence on the page, the text says, ' ...the number of time periods used in the RSI calculation changes each day based on volatility.' It should say, ' ...the number of time periods used in the DMI calculation changes each day based on volatility .' | ||||||||||||||||||||||||||||||
| 233 |
The last paragraph on this page should be replaced with, ' As with TRIN (aka the Arms Index), higher readings are usually bearish and lower readings are usually bullish. The dividing point between bullish (oversold) and bearish (overbought) is 0.90, rather than TRIN's 1.0. Also similar to TRIN, extreme readings foretell a continuation of the current trend. The example in Table 51 shows that a reading of 1.0 is actually bullish (a continuation) rather than bearish (overbought).' |
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| 244 |
The second bullet on this page states, ' Column D is first initialized to the Acceleration Factor Maximum (0.2 in this example)...' It should say ' Column D is first initialized to the Acceleration Factor Increase ( 0.02 in this example). ' The first few rows of the Parabolic SAR in Table 54 (also on page 244) should be as follows (the remaining data in the table is correct):
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| 294 | The third bullet on page 294 incorrectly states how column G is calculated. Column G is actually column E divided by column F. The headings at the top of page 292 correctly state how column E is calculated. | ||||||||||||||||||||||||||||||
| 318 | The discussion on calculating the exponential moving average in STIX mentions the value of "0.9" in three places. This should be ' 0.09'. | ||||||||||||||||||||||||||||||
| 328 |
The numerator in the formula for the Swing Index should be:
C - Cy + 0.5 (C - O) + 0.25 (Cy - Oy) |
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| 343 | The third bullet on this page incorrectly says, ' Next, divide this value by the current value in Column F.' It should say, ' Next, divide this value by the previous value in Column F.' |