A Short Explanation of the Factor on the Planetary Lines
stock may be oscillating back and forth across 100 dollars, or an index
oscillating across the 1000, or even 10000 level.
When this occurs, the program will use the latest closing price to define
the conversion value. If, for
example, you are watching a stock, and it trends up and one day closes at $101.
Now you will see the angle of your planetary lines change to a steeper
angle, because the program will increase the conversion value.
In most cases, we do not want to change the conversion value until that
stock has established its range well above $100 dollars, so how do we deal with
that? We simply change the FACTOR
of the lines to –1. In other
words, we manually move the decimal point back to where it was. If a market is trades below $10 dollars, you may have the
same problem in reverse. Just
switch the factor. You will never
need to use any factors other than 0 and –1.
On the Harmonic Toolbar, which we will cover shortly, there is a special
button which will automatically change the factor of the planetary line system
you have applied to your chart. This
makes your job easier in these situations.
Most of the time, the default factor of 0 is exactly the right conversion
value, so you need not worry too much about this.