

MARKET MASTER(TM)  USER'S GUIDE
Copyright(c) 1995 by R.M.C.

FOR LATEST PRODUCT AND PRICE INFORMATION OR TO ORDER, CONTACT:
R.M.C.
P.O. Box 60842
Sunnyvale, CA 94088-0842
U.S.A.
Phone: (408) 773-8715
FAX: (408) 733-9341
Internet email: forecast@forecast.com

The information here may not be the most up-to-date, since we 
revise the information periodically.  If you wish to receive the 
latest:
(a) User Guide; and
(b) Trading Tips with Check List; and
(c) Tips on How to Spot, Avoid and even Profit from Wall Street 
Shenanigans; and
(d) Functional Demo of our latest version of MarketMaster(tm); and
(e) Literature and brochure about MarketMaster; then
Send U.S.$39 ($29 credited towards software purchase) to the 
R.M.C. address given above.  If you want a 2-month fully-
functional Trial Version of MarketMaster, add U.S.$30, i.e. send a 
total of US$69 ($10 covers shipping and handling and $59 will be 
credited towards subsequent purchase).


READ THIS USER GUIDE FIRST:
Even though you are eager to start running Market Master right 
away, you will gain the most, if you take the next thirty minutes 
to carefully read through the user's guide.  Refer to it again to 
refresh your memory or understanding if anything remains unclear.

If after reading the User's Guide, you still have questions or 
encounter difficulty, please call the Market Master Technical 
Support Line, 408-773-8715, we'll either answer your questions 
right away or try to return your call collect at the best time you 
specify.

Whether you use Market Master to predict the prices of stocks, 
futures or market indices, you can feel confident that Market 
Master will help make your trading much more profitable.


REASON FOR MARKETMASTER:
MarketMaster is designed with one objective: To help you siphon 
off profits from the target stocks, futures or indices (whether 
going long or short) as efficiently and effortlessly as possible.  
To do so, we have developed up to six(6) different powerful 
algorithms, each with two variations (Zoom On and Zoom Off) that 
create leading indicators to directly forecast both the direction 
and extent of future price movement before it happens.  If you are 
experienced investor/trader, you know that advance forecasts of 
price movement direction and price targets are extremely difficult 
to develop, and as far as we are aware, no other software 
publisher has succeeded in producing a true price forecasting 
program that provides forecasts for both the direction and the 
magnitude of price movement ahead of time.  We have decided to 
fill this glaring vacuum to satisfy an important need of investors 
and traders worldwide. 

The forecasted target prices are plotted next to the current price 
for easy visual determination of the direction and magnitude of 
future price movement.  The results are displayed graphically for 
easy, at-a-glance decision-making.

In addition, MarketMaster constantly checks and analyses its 
margins of error, which are inherent in any forecasting endeavor, 
and learns from its errors automatically.  It then self-adjusts to 
limit error propagation and to give you better price forecasts.  
As usual, our emphasis here is power, accuracy, reliability and 
ease of use.

DISCLAIMER:
Your use of Market Master constitutes a representation that you 
are fully aware of the inherently uncertain nature of forecasting, 
and in particular, financial forecasting, as well as the risks 
inherent in buying and selling in the financial markets, and that 
the output of Market Master does not constitute "advice" or 
"recommendations", and that past performance is no guarantee of 
future results.

Hardware & Software Requirements
MarketMaster requires an IBM PC or compatible with 512K RAM, DOS 
2.0 or later, and a minimum hard disk space of 720K (less than 1 
Mb).  While a VGA monitor would be best, any monitor will do.  
Note that for CGA monitors, the program picks the highest 
resolution which usually results in a two-color black and white 
display.  While the use of a mouse is not required, it is much
recommended.  Be sure to load the mouse driver by following your
mouse manufacturer's instructions before running MarketMaster.


HOW TO INSTALL MARKET MASTER
If you wish to use a mouse (recommended), be sure to install the
mouse driver in accordance with your mouse manufacturer's 
instructions. Or you can install the mouse driver after Market-
Master is installed, but before you run the program.  If you 
want to use the mouse while in the MarketMaster program, but 
you forgot to install it first, simply exit the MarketMaster
program, install the mouse driver (we recommend that you put the
installation commands in the AUTOEXEC.BAT file in the root 
directory of your C: drive) and run MarketMaster again.

Installation Method A: (Fast Installation, But Key Disk Required 
to Run):  Create a directory on your hard disk using whatever 
directory name you like (e.g.,MM) and copy all the MarketMaster 
files from the floppy disk over to this newly created directory.  

Next, go to the newly created directory containing the files you 
just copied.  Type "GO" and press the <Return/Enter> key to 
extract the compressed files that are now on your hard disk.  
That's all there is to the installation!  However, you must keep 
the original disk (key disk) in the floppy drive to run.

Installation Method B: (Machine Installation, Key Disk No Longer 
Required):  Create a first-level (i.e. at the root of the drive) 
directory on your hard disk using whatever directory name you 
like (e.g., MM or MMASTER).  For example, to create a directory 
called MM, use the command "MD   MM".

Next, go to the newly created directory.  (E.g. use the command 
"CD   MM" and press the <Return/Enter> key; you'll then be in the 
MM directory).  Then go to the floppy drive where the MarketMaster 
floppy disk is by typing the letter of the floppy drive followed 
by a colon. (e.g. "A:" or "B:", followed by the <Return/Enter> 
key).  Then type "INSTALL" and follow the instructions.  If your 
floppy drive is X and you want to install it to hard disk Y, 
you'll type "INSTALL  X:   Y:".  That's all there is to the 
installation.

You should keep the original floppy disk (key disk) in a safe 
place because in the event you lost the machine install, you can 
still run the program if the original key disk is placed in one of 
the floppy drives (Drive A or Drive B).  

There is a batch file called "REMOVE.BAT" which allows you to 
remove the installation from one computer so that it can be 
installed on another.  

To move MarketMaster to a different computer, you must first 
remove the existing MarketMaster installation from the hard disk 
to the key disk. To remove the installation from hard disk Y to 
floppy disk X, you go to the floppy disk drive X and simply type 
the command "REMOVE Y:  X:" and press <Return/Enter> key.  

You can then take the key disk and install MarketMaster from the 
key disk to any computer by following the installation steps as 
first described above.  

If you have upgraded to a higher or newer version of Market Master 
and wish to continue to use your data files, you should first 
install the newer version in a new directory.  Then copy all your 
old data files (i.e. files with extension ".DBF") into this new 
directory.

Data requirements
For the one- or two-indicator Market Master, you only need the 
daily high, low, and close prices for each security, futures 
contract or market index you are tracking.  The four- and six-
indicator versions will also utilize, but do not require, volume 
or open interest data. 

You'll need a minimum of 18-23 days of data to begin a forecast.  
The maximum number of days of data the program will use is 62-67 
days.  The first 12-17 days of data are used as the initial 
foundation for Market Master 's analysis and are not displayed on 
the graphs that Market Master produces.  To obtain a forecast, 
simply enter the data for the preceding 18-23 days from 
publications such as Investor's Business Daily or Wall Street 
Journal, or use the data files from a data bank source.

Market Master assumes that the data are real historic observations 
and processes them with that assumption. Certainly if the numbers 
are false or inaccurate, the processing will be meaningless and 
computational failure may result. To avoid problems, always use 
real historic data. For best results, pick only actively traded 
issues for your analysis. Not only will the forecasts be more 
accurate, these are also the types of investment/trading vehicles 
that you'll want to use since they tend to offer the most 
opportunities for profit and the least slippage.  Please note that 
volume information is not needed or used in the analysis by 
Indicator 1, 2, 5 or 6, but are used in analysis by Indicators 3 
and 4. If you use the 1- or 2-indicator version, there is no harm 
in entering volume data if you wish to simply note it for the 
record or make your files ready for use with a more advanced 
version of Market Master at a later time. 

How to convert data to work with Market Master
Market Master uses dBASE file format for its data files and 
records. Market Master will not accept real-time data, or data in 
DIF format. It can use, via a conversion step, data files that 
have been converted to a specific comma-delimited ASCII format, or 
CSI or MetaStock format.  It also allows manual entry of data via 
the keyboard. If you wish to do data/file conversion, two optional 
file converters are available from us:

1) ASCII File Converter (C1) converts certain ASCII data files 
(such as Telechart 2000, AIQ and PRN text files) to work with 
Market Master's dBASE format. The ASCII data must be comma 
delimited and in the following format: YYMMDD for date, plus price 
data (High, Low, Close) and volume in any order. All fields in 
each record must be separated by a comma, although extraneous 
fields are okay, e.g. symbol field, open interest field, etc. 
Additionally, each record must reside on just one line (i.e. end 
with <CR> <LF>). For example," 920118, 20, 17, 18.5, 3579 <CR> 
<LF>" is fine, so is "XYZ, 920118, 17, 20, 18.5, 3579 <CR> <LF>". 
The ASCII file converter does not work for ASCII data separated by 
blank spaces. Typically you have five fields: Date, High, Low, 
Close, Volume, although more fields are permissible and the fields 
can be in any order. You will need to check with your data source 
whether data provided is in the above format.

2) Metastock/CSI Converter(C2) converts data files from CSI, 
Metastock, and Computrac data formats to dBASE format.


INSTRUCTIONS ON OPERATING AND USING MARKETMASTER:
After installing Market Master as described above,  you should 
still be in the hard disk directory containing the installed 
MarketMaster.  If not, you should simply go to the hard disk 
directory containing MarketMaster and type "GO" followed by 
pressing the <Enter/Return> key to begin running the program.  You 
should temporarily insert the original disk (the "key disk") in 
the floppy drive when Market Master checks for its presence.  
Otherwise, the program will not run. You can remove the disk after 
the check.  As stated earlier, if you had machine-installed 
MarketMaster, (i.e. using Method B of the Installation Procedure), 
no key disk is needed.

Just remember that to run the program, you must first go to the 
directory containing Market Master.  Type "GO" and press the 
<Return/Enter> key to begin.

After the initial introductory screens, a menu will be displayed.  
From this menu, you can choose to:
1) View a demonstration file
2) Create a new file or retrieve an existing file, or
3) Exit the program

To view a demonstration file
Type "DEMO-" and the program will display the "DEMO-DBF" file 
containing actual sample data to show how the indicators 
forecasted. There are numerous additional demonstration files 
containing actual historical data. These files all end with a 
hyphen so that they are easily identifiable. These demonstration 
files are also working files whose data can be updated, edited, 
deleted, etc.

To create or retrieve a file
If you want to do your own analysis, enter the name of the file 
you wish to create or want to use. If that file has not been 
previously created, Market Master will automatically create it for 
you so that you can begin data entry for that file.  Market Master 
automatically adds the file extension, ".DBF" (data base file), to 
all data files.

For example, if you want to track the stock for IBM and name your 
data file for IBM stock "ibm", then just type in "ibm" as the file 
name then press the <Enter> key when MarketMaster asks you what 
file name you want.  If a file named "IBM.DBF" already exists in 
the MarketMaster directory, it will be automatically fetched and 
opened.  If the file does not yet exist, it will be created.  
(Note:  Those familiar with dBASE will note that the data files 
are in dBase file format).  Once the proper data file is chosen 
(or created, if not found on disk), you are ready to use the 
functions.

To view and pick from the list of all the existing files, type "?" 
and press the <Enter> key.  Press the first letter of the file 
name and/or use <Pg Up>, <Pg Down> and the up and down arrow keys 
to scroll through the list and select the file you want to open. 
Then press the <Enter> key to open that file.  You can pick "DEMO-
" for a demonstration and the program will use the "DEMO-.DBF" 
file to demonstrate to you its capabilities.  Additional DBF files 
that come with MarketMaster are also for your review.

TO DO YOUR OWN ANALYSIS:
You can analyze any and all stocks, futures, indices and mutual 
funds in any market by entering the file you want to use.  If that 
file does not already exist, it will be automatically created for 
you so that you can then begin data entry for that file.

To preserve uniqueness of data file names and avoid name confusion 
or duplication, we strongly recommend that you use the standard 
symbol or ticker symbol for the stock, index, future or mutual 
fund that you want to analyze.  Of course, you are always free to 
use some other name, but remember that in doing so, you risk 
creating confusion or symbol name duplication especially if you 
track a very large number of symbols.


The Command Menu
Once your data file is chosen (or created, if not found on the 
disk), you will be presented with a command menu similar to those 
found in spread sheet programs such as Lotus 1-2-3.  If you are 
familiar with Lotus 1-2-3, you will know how to move (i.e. step or 
cycle) from one command to the next by pressing the space bar or 
by using the arrow keys.  As you move from command to command, a 
description of the function of the high-lighted command will be 
displayed on the last line of the screen.  Use the space bar to 
move to the different commands and familiarize yourself with the 
functions of each command.  Note that the DELETE and ZOOM commands 
are each a "toggle" in that it will alternate between the 
functions of DELETE and UNDELETE, and ZOOM ON and ZOOM OFF, 
respectively.

You will see a line at the top of the screen with "Record #" (that 
tells you which record you are viewing. A new file will say 0 of 
0.), "File:" (the name of the file you are viewing), and "Last 
Update" (today's date).

The following is a listing of the commands, and their respective 
function and purpose:

Command 
Function
Purpose

1st
Use first indicator 
to forecast
Displays price forecast 
and graph using first 
indicator.

2nd
Use second indicator 
to forecast.
Displays price forecast 
and graph using second 
indicator.

3rd
Use third indicator 
to forecast.
Displays price forecast 
and graph using third 
indicator.

4th
Use fourth indicator 
to forecast.
Displays price forecast 
and graph using fourth 
indicator.

5th
Use fifth indicator 
to forecast.
Displays price forecast 
and graph using fifth 
indicator.

6th
Use sixth indicator 
to forecast.
Displays price forecast 
and graph using sixth 
indicator.

I
Instant Calculator 
Pop-Up
Instantly pops up a 
calculator.

Z
Toggle ZOOM feature 
ON/OFF
To toggle ON/OFF short-
term view with higher 
sensitivity





CrOvr
Crossover analysis of 
5-day and 11-day 
moving averages.
Displays a graph of 5- 
and 11-day moving 
averages.

View
Browse file in table 
format.
Line by line display of 
data in file with new 
commands.

Add
Append new record to 
file.
Allows you to add a new 
record to the file.

Edit
Edit currently 
displayed record.
Allows you to edit the 
record on the screen.

Del
Mark current record 
for future deletion.
Marks the record on the 
screen for deletion. 
This is a toggle 
function. Strike once 
to delete. Strike again 
to undelete.

Next
Display next record.
Displays the next 
record in the file.

Prev.
Display previous 
record.
Displays the previous 
record in the file.

Top
Display first record 
in file.
Displays the first 
record in the file.

Bottom
Display last record 
in file.
Displays the last 
record in the file.

File
Select another 
database file.
Returns you to the main 
menu and allows you to 
select another file.

Shell
Shell to DOS
Temporarily drops you 
down to the DOS prompt 
without getting out of 
MarketMaster.  So that 
you may be able to run 
some DOS commands.  To 
get back to 
MarketMaster, you type 
"exit" and press 
<Enter>.

Quit
Quit to DOS.
Exits and quits Market 
Master and returns you 
to DOS.


To select a command from the command menu
1. Press the space bar to select the command, then press the 
<Enter> key, or
2. Use the arrow keys to select the command, then press the 
<Enter> key, or
3. Press the first letter of the command (e.g. N for Next,) or the 
number of the indicators (e.g. 1 for Indicator#1).

To display the desired record
Use the following commands:
"Next" to display the next record in the file.
"Prev." to display the previous record in the file.
"Top" to display the first record in the file.
"Bottom" to display the last record in the file.

To add new data
Select the "ADD" command. The program is designed to take in Date, 
High, Low, Close and Volume data. The cursor will first be 
positioned in the DATE field. Enter the date as YYMMDD. The cursor 
will then move down to the next field. Enter the high, low, close 
and volume respectively. The 1- and 2-indicator Market Master do 
not use the volume data and it is not necessary to enter the 
volume data. You may wish to key in the volume data if you plan to 
upgrade soon to a 4-indicator or 6-indicator version which will 
use volume data. In lieu of volume data, you may also enter open 
interest.  Whether you use volume or open interest, you should be 
consistent and not mix the two in the same data file.  Once the 
last field has been keyed in, press the <Enter> key and the system 
will process and save the information. To add data for another 
date, just select the "ADD" command again and proceed to enter 
more data.

To edit existing data
Select the "EDIT" command after you have displayed the record you 
wish to edit. The cursor will be positioned in the DATE field. 
Move between the fields using the arrow keys. Type over the data 
you want to edit/change. When you are finished with editing the 
data for a particular date, press the <Enter> key to save the 
information. Note that editing may also be done while at the View 
Mode.  To edit another set of data, position to the proper date 
before selecting the "EDIT" command again to repeat the above 
steps.

To delete data
Note: The DELETE command is a toggle in that it will alternate 
between the functions of DELETE and UNDELETE. Select the "DEL" 
command after you have displayed the record you wish to delete. 
The word "DELETED" will now replace "RECORD" on the left upper 
corner indicating that the record has been marked for future 
deletion. To undo the DELETE command (to UNDELETE), select the 
"DEL" command again. You can UNDELETE any record marked for future 
deletion at any time prior to viewing a forecast graph or exiting 
the file. Once you have used an indicator to forecast or have 
exited the file, all the records marked for future deletion are 
permanently deleted. Records marked for deletion are not used in 
the forecasts.

To select another file
Selecting the "FILE" command will return you to the main menu and 
allow you to select and open another file.

The View / Browse mode
The use of the View command immediately provides you with a line-
by-line display of data records in table format (also known as the 
"Browse Mode"). The VIEW command is not active on files that have 
less than two records.  Once you have entered two or more records, 
the VIEW command becomes active and you may enter any subsequent 
records in VIEW mode.  For intra-day analysis, you need two intra-
day records to activate the VIEW mode.  In the case of intra-day 
analysis, the dates may be the same but the records will be 
maintained in the order they were originally entered.  Therefore, 
for intra-day data, be sure to enter the records in the right 
chronological order.  Use View mode to see the order better.

The VIEW mode is preferred by many experienced users.   Once you 
are in View or Browse mode, the Lotus-style menu will no longer be 
operative. Instead, use the new commands as described on the top 
of the screen to navigate or manipulate data. You may also press 
the F10 function key to see, and pick from, all available 
commands.  You can use <Pg Up>, <Pg Down> keys to scroll up and 
down and  the arrow keys to move from record to record, and from 
field to field.

You might find the View mode more convenient for adding (i.e. 
Appending), updating (i.e. Editing) or deleting records, but this 
is largely a matter of personal preference.

The following are some of the commands found in the VIEW mode:  
Some of the short-cut keys for the commands are listed at the top 
of the screen while in VIEW mode.  For example ^U means pressing 
down the <Ctrl> key and while keeping it down, press the U key.

^U = DELETE (While holding down the <Ctrl> key, press the <U> 
key).
It is the same as the Delete/Undelete toggle in the aforementioned 
Lotus-style command menu. You can mark each line of record as 
Deleted or Undeleted using the Control-U key combination. Use the 
<Pg Up>, <Pg Down>, and arrow keys to move about and select the 
line of record you wish to delete. Then press ^U. The record will 
then be marked for future deletion. To UNDELETE, press ^U again. 
The records marked for future deletion will remain visible on the 
screen until a forecast is made using one of the indicators or 
until the file is closed. You can UNDELETE any of these marked 
records any time before you use an indicator to make a forecast or 
before you exit the file.  Once you have selected an indicator to 
forecast or exited the file, the records marked for deletion are 
permanently removed and cannot be undeleted.

F2 = EDIT
Use <Pg Up>, <Pg Down> and the arrow keys to select the data you 
wish to edit. Press the <F2> key to mark the data and then type 
over the data you want to change.

F3 = APPEND / ADD
Press the <F3> key and a message will be displayed on the bottom 
of the screen: "Proceed to append record? N". If the answer is 
yes, press "Y". The cursor will be positioned at the top of the 
screen where a new line has been created for the new data entry. 
Type in the data for the record you wish to add and press the 
<Enter> key when you are all finished. Otherwise, to add another 
record, press the <F3> key again.

While in the View mode, you can use the <Pg Up> and <Pg Dn> keys 
for scrolling up and down multiple lines as well as the arrows to 
move from record to record or field to field.  To get out of the 
VIEW mode, you simply press <Enter> or <Esc> key.

ENTER / ESC
Press the <Enter> or <Esc> key to exit the View mode and return to 
the main data screen and the Lotus123-style Command menu.

AUTOMATIC DATA ENTRY:
As stated earlier, file format conversion utilities are available, 
which will convert data files written in ASCII, CompuTrac, CSI, 
Metastock formats to MarketMaster's dBase file format.

How to interpret the Market Master forecast graphs

The difference between the six indicators
The indicators differ in their different methods of analysis and 
price forecasting and in their leading characteristics: Each 
indicator also provides a different perspective of the market. 
Viewed together, the battery of indicators provides a 
comprehensive overview of different impending market forces 
acting to bring about the predicted price change. By way of 
analogy, if one wishes to know what the interior of a car looks 
like, he gets a lot of information by looking through the front 
and rear windshields. However, if he is further able to look 
through each of the side windows, he will get the best 
assessment of the car's interior. However, since we are dealing 
with forecasts, which, unlike facts, are not yet certain, there 
will be instances when some of the forecasting indicators do not 
agree. To be most conservative, choose only those opportunities 
where most of the forecasting indicators agree and the 
forecasted price change is large.  Then switch to the Zoom mode 
and obtain more sensitive forecasts for even shorter-term.  If 
the Zoom forecasts also mostly agree, then the reliability of 
the forecasts is further increased.

Interpreting the graphs
Normally, a clear and decisive uptrend or downtrend in price is 
the easiest to deal with.  In fact you can make money in such a 
situation even with very lagging indicators.  The toughest markets 
for the trader/investor and for most financial software are the 
sideways markets, that do not show a trend.  Most users already 
have one or more trend-following systems but nothing for the 
sideways markets.  We have therefore incorporated powerful 
analytical procedures to enable you to not only deal with sideways 
markets, but profit handsomely from them.  As a result, 
MarketMaster is particularly powerful and profitable for the 
otherwise frustrating and costly sideways or meandering markets.  
Of course, you should continue to use whatever software or system 
that benefits you.  With MarketMaster, you are in a position to 
profit from narrow trading ranges and situations that would be 
considered extremely difficult and costly to trade by the 
professionals.  Remember that 70% of the time the market is non-
trending.  This would mean that you will likely improve your 
performance during that 70% sideways "drought" period, turning 
what is financial famine for others into a potential feast for 
you.

The analysis and forecast graphs generated by Market Master will 
use data from the last 62 days. The first 12 days of data serve as 
the initial foundation for analysis and are not displayed ( nor 
are the daily highs, lows and volume, even though they are used in 
the analysis). Thus up to 50 days of closing prices and analysis 
are displayed. The latest and most recent data and forecast are 
displayed on the rightmost end of the graph.

For each analysis and forecast, a graph display with 3 lines will 
be presented:
*       The blue (or dotted) line is the closing price line showing 
the actual closing prices for up to the last 50 days.  In the Zoom 
mode, it is up to the last 23 days.
*       The yellow (or solid) line is the forecasting indicator line 
which forecasts the probable future price direction and target.
*       The green (or dashed) confirming indicator line confirms what 
has been forecasted and serves to justify a planned positionit 
will help keep you from entering or exiting the market 
prematurely.

The confirming indicator confirms whether the actual price has 
topped or bottomed. This is useful because of the substantial lead 
time that forecasts can sometimes precede a price turning point. 
It is not unusual for a market to be bearish as indicated by the 
forecasting indicator line, and yet the prices do not decline 
right away, and vice versa.

After knowing the price will be bullish or bearish from the 
forecasting indicators, whether to open, close or keep a position 
can then be determined by referencing the confirming indicator. A 
bullish position is well justified if the forecasting indicator is 
bullish (i.e. substantially above the closing price) and the 
closing price remains above (and NOT equal to) the confirming 
indicator. The case for a bearish position is well justified so 
long as the forecasting indicator is bearish (i.e. substantially 
below the closing price) and the closing price remains below (and 
NOT equal to) the confirming indicator.

By comparing the forecasting indicator line with the closing price 
line and the confirming indicator line, you can immediately 
determine the near-term price outlook. In general, if the 
forecasting indicator line is above the closing price line, and 
the closing price line is above the confirming indicator line, a 
bullish position is justified. This is so because the forecasting 
indicator is telling you that the future price/direction will be 
above the current price and this is further confirmed by the 
closing price line being above the confirming indicator line.

Conversely if the forecasting indicator is below the closing price 
line, and the closing price line drops below the confirming line, 
a bearish position is justified.

Moreover, the degree of bullishness or bearishness can be gauged 
by the amount that the forecasting indicator line is above or 
below the closing price line. A deteriorating bullish situation 
(i.e. one less bullish) is indicated where the forecasting 
indicator line, although above the closing price line, is rapidly 
dropping or moving towards said closing price line. Conversely, a 
decreasingly bearish situation (i.e. less bearish) is one where 
the forecasting indicator line, although below the closing price 
line, is moving up relative to said closing line and approaching 
it from below. 

Theoretical buy signals are triggered where the forecasting 
indicator line is above the closing price line which in turn 
crossed above the confirming indicator line. Theoretical sell 
signals are triggered where the forecasting indicator line is 
below the closing price line which in turn crossed below the 
confirming indicator line. In practice, you would want to pay 
attention to the magnitude of future price movement by comparing 
the target price (as indicated by the forecasting indicator line) 
with the current price (as indicated by the closing price line) to 
see if it is of sufficient magnitude to justify a trade, after 
taking into consideration commission, slippage, frequency of 
trading and other personal preferences, etc.

*       For a bullish forecast, buy when the closing price is above 
the confirming indicator and the magnitude of upside movement, as 
shown by the forecasting indicator, is sufficiently large, i.e. 
sufficiently above the closing price.
*       For a bearish forecast, sell when the closing price is below 
the confirming indicator and a sufficiently large downward 
movement from the closing price, as shown by the forecasting 
indicator, is evident.
	You will note that in both instances, the closing price will 
be positioned in such a way that it is "sandwiched" between the 
forecasting indicator and the confirming indicator.  The only 
distinction is that in the case of bullish forecast, the 
forecasting indicator is on top (i.e. above the other two lines) 
and in the case of bearish forecast, it is at bottom, (i.e. below 
the other two lines). 

The amount of lead in each forecast is highly data dependent. The 
nature of the underlying stock, future, index or mutual fund, does 
affect the amount of lead time. If you do not want to rely on 
confirming indicators (which tend to be somewhat late and 
conservative), it is advisable to adjust for the amount of lead 
time by referencing recent forecast history. For example, if for a 
certain stock, the buy signals from the forecasting indicator tend 
to come a day before the true price bottom, then you would want to 
take that into account in planning your entry or exit, 
particularly if you do not want to wait for the confirming 
indicator to confirm. Likewise, if the sell signal for this same 
stock tends to come 3 days ahead of the true top, you would want 
to consider waiting for about 3 days after a bearish forecast, or 
until the signal is confirmed by the confirming indicator, before 
selling or going short.

Each stock, mutual fund, futures contract or security has its own 
peculiar lead time for the buy and sell signals and an examination 
of the graphic display given by Market Master will usually provide 
the clue as to how much time adjustment to make. Or you can wait 
for the confirmation from the confirming indicator. Please note 
that as situations warrant, Market Master rescales the forecasting 
and confirming indicator lines to show the correct relative 
strengths before predicting the next period.  This enables more 
sensitive and accurate forecasts for the last day for better 
decision-making.

For bullish or long positions, it is advisable to arrange the 
price targets or price changes in ascending order for planning 
purposes.  It is important and desirable to open a position only 
at or near a price turning point.  This is so because at a price 
turning point, your risk is least and your profit potential is 
maximized.  For example, if the price of a stock is currently at a 
turning point and selling for $50 and the forecasts are as 
follows:

Indicator        #1      #2      #3      #4      #5      #6
Target          $52     $51     $54     $53     $56     $55

You would rearrange the various targets in ascending order as 
follows:

Indicator        #2      #1      #4      #3      #6      #5
Target          $51     $52     $53     $54     $55     $56

Your expectation then is that the price will first move to $51, 
then $52, then $53, and finally $56 under ideal conditions.  
However, since circumstances are rarely ideal, you may expect some 
corrections on the way up.  Let us assume that subsequently the 
price moved to $53.25 and then drops, you will learn that the 
lowest 3 targets are met for the earlier turning point at $50.  
This will serve as a guide to utilize the lowest 3 targets as 
realistic short-term goals at the next price low (i.e. bullish 
price turning point), that way, you will not hold for unrealistic 
moves in the short-term.

Strategies can be highly important in the success of your trading.  
This is an area that is outside the scope of  Market Master, which 
deals only with price forecasting.  Generally, it is highly 
advisable to trade in stocks and instruments that are optionable.  
There are, for example, about 1,000 stocks that have options. 

As an example of a bearish or short position, let us assume that 
the stock is trading at $100 and is at a price top (i.e. bearish 
price turning point) and the following forecasts are obtained:

Indicator        #1      #2      #3      #4      #5      #6
Target          $96     $97     $94     $95     $92     $93

You would rearrange the various targets in descending order as 
follows:

Indicator        #2      #1      #4      #3      #6      #5
Target          $97     $96     $95     $94     $93     $92

Assuming that you are satisfied that you are at or close to a 
price peak and want to go short, you may wish to free yourself 
from the risk of unexpected upside swings.  You may, for example, 
choose to buy a short-term, at- or out-of-the-money call for each 
100 shares that you go short at $100.  Alternatively, you can buy 
a straddle with strike price of $100 and then go short 100 shares 
for each straddle, which is an even more bearish strategy.  The 
advantage of such approaches are that you largely eliminate the 
anxiety that unexpected upside movement may bring.  Additionally, 
the need to be very accurate and precise about the true price top 
is somewhat reduced.   Let us assume that prices then drop to 
$94.5 before rebounding.  From  this experience, one may 
tentatively conclude that the lowest four magnitudes of price 
movements are realistically achievable in the short term when 
first obtained at a price top (i.e. bearish price turning point).   
This is helpful to know because in a bear market, increasing 
number of downside targets from a price peak will be quickly 
reached in the short-term and decreasing number of upside targets 
will be achieved from a price bottom.  Such experience and 
observations help to assess the overall condition of the market 
(i.e. bullish or bearish).  If you find upside targets are hard to 
meet and downside targets are readily met, it is an indication 
that short positions are to be favored, and vice versa.  
Typically, you would adopt a strategy wherein you would be 
prepared to close out if a certain number (based on prior 
experience) of nearest price targets (originally forecasted from a 
price turning point) are met.  Even if the forecasts indicate a 
very substantial additional movement remaining, it would be 
prudent to take some profits.

Additional Interpretation Tips
Looking to the left of the last day on the graph, one sees the 
yellow (forecasting) line zig-zagging across the screen.  It is 
important to note that the zigzags are scaled to provide an 
indication of relative strengths internal to the underlying 
security.  It is therefore meaningful and feasible to apply the 
concepts of trendlines to the analysis of the movement patterns of 
the yellow (forecasting) line.

First, if the yellow line zigzags upwards, it indicates that the 
prices are turning more bullish (or less bearish).  Additionally, 
we can see if the underlying security is turning bullish by 
observing if the yellow line is trending upwards by making higher 
lows (increasingly bullish or decreasingly bearish) and higher 
highs.  If the yellow line is trending downwards (by making lower 
highs and lower lows), then it is an early warning that the prices 
are turning more bearish (or less bullish).

Next, we see if the yellow lines tend to peak out at certain 
prices which would be important potential resistance levels.  
Where the yellow line tends to bottom out would be important 
potential support levels.  Whenever prices reaches these levels, a 
reversal is likely to occur.

Next, we study the yellow line relative to the price.  If on a 
particular day, prices remain essentially unchanged and yet the 
yellow line rises (bullish) or falls (bearish) sharply, it is 
often a warning of what is to come.  Likewise, if prices drops 
slightly or even rises slightly, and yet the yellow line drops a 
lot more, an early hint of imminent and further bearish movement 
is indicated.  Conversely, a slight price drop or a slight price 
rise which results in a sharp rise in yellow line, is often a hint 
of imminent upward price move or further upward price move.

It is also important to stay out of situations that are not clear 
cut or not rewarding.  In trading, there should be no egotism, 
only pragmatism.

Interpretation of Crossover Analysis
In addition to the 6 forecasting indicators, a cross-over analysis 
of the 5-day and the 11-day moving averages is also available. At 
the Lotus123-style Menu, press 'C' or choose 'CrOvr' command to 
activate this analysis. In this analysis, the yellow (solid) line 
would represent the 5-day moving average, while the green (dashed) 
line would represent the 11-day moving average. The interpretation 
is classic; i.e., when the faster indicator (i.e. the 5-day moving 
average) is above the slower indicator (i.e. the 11-day moving 
average), it is bullish. Conversely when the faster indicator 
(i.e. the 5-day moving average) is below the slower indicator 
(i.e. the 11-day moving average), it is bearish.

Printing the graph on the screen
If you wish to print the graph displayed on the screen, you should 
turn on you printer, make sure it has paper and then select your 
printer type. In a few seconds to a minute or more (depending on 
your printer), the graph will be transferred from your screen to 
your printer.

After the printer is finished with printing, the program presents 
you with the Lotus123-style Menu for further instructions. 
Currently, for hard copy graphic output, we support all printers 
that are compatible with Epson-FX, HP-Laserjet, Epson-MX or IBM 
Proprinter. Be sure to set your printer to the proper emulation 
mode if it is other than the above named.

MORE TRADING TIPS
On Entry and Exit
It is foolhardy to be long or short 100% through a single trade.  
To try to pinpoint the exact top or bottom is not as rewarding as 
gradually easing in and out of price turning points.  For a given 
stock, it is better to initially commit only a fraction of the 
total allocated funds at what you judge to be the bottom (to go 
long) or top (to go short), and gradually increase your commitment 
as further evidence of the correctness of your judgment comes in.   
Likewise, it is advisable to take profits by liquidating a portion 
of your total position at potential price turning points.  This 
type of averaging around price turning points will reduce the 
impact of error and make you less emotional.  Note that this is 
very different from and far superior to the mechanical approach 
that advocates the commitment or liquidation of a fixed percentage 
regardless of whether the price is or is not at a turning point.  
Those who use the Martingale method will readily recognize that 
MarketMaster will dramatically improve their performance, since 
they will be concentrating their trades near turning points, 
rather than spreading them evenly over the entire price spectrum.

On Profiting from Price Declines
You are not a "compleat" investor/trader unless and until you can 
handle price declines as easily as you can deal with price 
advances.  As mentioned earlier, options may dramatically reduce 
your risk of going short.  One other major risk in shorting a 
stock is the chance that a stock may become a takeover candidate 
and rise sharply.  Again, proper options strategy will be fully 
adequate to protect you from such unusual events that do not occur 
often but can be devastating to an unprotected short position.  In 
general, closed-end funds of high liquidity are reasonably safe to 
short even without options protection, provided you are in a bear 
market.  This is due to the fact (not guarantee) that there is 
rarely ever an effort to takeover the shares of a closed-end 
mutual fund.  In a bear market, shorting closed-end mutual funds 
may be relatively safe since the chance of a takeover or short-
squeeze is greatly reduced.  There is no time premium costs that 
options would entail.  However, as in any short position, care and 
advance study are a must before placing your order to implement 
your strategy.

Mutual Funds
Since these don't have daily high, low and close prices, the best 
approach is to forecast the index itself, if the mutual fund is an 
indexed fund. For example, if your mutual fund consists of OTC 
stocks, then it should closely follow the OTC (NASDAQ) Index. 
Simply enter the high, low and close for the Index and use the 
NASDAQ volume. Likewise, if your mutual fund is indexed to the S&P 
500 Index, you may then use the daily NYSE volume as the volume, 
and the daily high, low and close of the S&P 500 Index.

Alternatively, you may use the high, low and close of the Dow 
Jones Industrial Average. In other words, always look for the 
Index that closely follow the fund. For example, use 
transportation index for transportation funds and utility index 
for utility funds. A note on volume data: It is not necessary to 
be exact on volume data; you can use the first three significant 
digits, which will be accurate enough.  The accuracy of price data 
is more important, and should be exact, if possible.

Sector funds may require special treatment. For example, to track 
a gold fund, first determine what is the major stock or stocks 
comprising that fund. A simplified approach is then to forecast 
the predominant stock within said sector fund. A more refined 
approach is to synthesize an index based on the top stocks 
comprising that fund, e.g., by taking the mean or average of their 
daily highs, lows, closes and volumes. A still more refined 
approach is to further weight the component stocks according to 
their share of the total fund value.  The ultimate position is to 
weight every stock comprising the fund to generate the synthetic 
index, in arriving at the synthetic high, low, close, and volume. 
However, don't get carried away with this, as a point of 
diminishing returns is quickly reached.

Of course, you can always set the High and Low to equal to the 
Close and then do the forecasts. 

Futures
You can use Market Master to trade all futures including index 
futures, S&P 500, all agricultural futures (corn, pork belly, 
wheat, etc.), currency futures (Yen, Deutsch Mark, Swiss Franc, 
British Pound), energy futures (crude oil, gasoline), precious 
metals (gold silver, tin), interest rate futures (treasury bonds, 
GNMA), and overseas futures such as rubber, freight, etc..

Because volume data are not reported at the end of each day for 
futures contracts, one must enter an approximate or estimated 
volume, unless you decide not to use volume data at all.  You 
cannot just leave the volume figure as "0" when you have volume 
figures for previous records.  Any reasonable volume figure will 
do (e.g., just enter previous day's volume as today's, and a day 
or two later, when the actual figures come out, edit the old 
numbers to reflect the true figures now available).  If you leave 
the last day's volume as "0" when the preceding figures are not 
"0", the forecasts will become inaccurate for Indicators 3 through 
4.  You must either provide volume data for all the records in a 
file or for none of the records, unless you use Indicators 1, 2, 5 
and 6 only, in which case volume data are not used and therefore 
irrelevant.  Alternatively, in lieu of volume, you may enter open 
interest data as if it were volume.  Just be consistent, and don't 
mix up volume with open interest, as the two are quite different.  
If you use volume data, then continue to use volume data.  
Likewise, if you use open interest instead, then continue to use 
open interest data.

Because futures contracts expire, you should follow the different 
expiration months simultaneously so that if the nearest expiration 
expires, you have the next nearest to follow.  It is advisable to 
follow at least two of the nearest expiration futures (i.e., two 
that are about to expire) so that if one expires, pick the next 
nearest one and add the second nearest to expiration contract (so 
that you again have 2 contracts to follow).

Stock Options
If you wish to use Market Master for stock options, we suggest 
that you forecast the underlying stocks instead of the options 
themselves. If you wish to trade stock index futures, we suggest 
that you analyze the underlying index itself.  For example, for 
the S&P 500 futures, it would be much better and more accurate to 
forecast the S&P 500 cash index by using the daily High, Low and 
Close of the cash index itself and by using the total New York 
Stock Exchange volume as a proxy for the volume of the 500 S&P 
stocks. Likewise, for OEX options trading or stock index futures 
options trading, the underlying cash index should be analyzed 
instead. Not only will the results be more accurate, the data is 
readily available and not delayed. Moreover, you avoid the problem 
associated with expirations as would exist if you were to analyze 
the futures or options directly. In the case of non-market-index 
futures such as agricultural commodities, you may have no choice 
but to use the data relating to the particular commodities.

Besides stocks and futures contracts, areas where Market Master 
can be useful include the forecasting of the Dow Jones Industrial 
Average, a market index that has a High, Low, Close for each day. 
As for volume data, simply use the New York Stock Exchange Volume 
in lieu of the volume for the 30 industrials. This is preferable 
to no volume at all. You can use the signals for the broad market 
averages to switch between stock and money market funds without 
commission if you switch between no-load mutual funds.

TECHNICAL SUPPORT
If you have a technical question about or need technical 
assistance with Market Master, please call 408-773-8715.  If your 
call cannot be answered right away, we'll try to return your call, 
collect, at the preferred time you indicate.

If you desire to upgrade to a newer or more advanced version of 
Market Master, please call 408-773-8715 for more instructions.

RMC, P.O. Box 60842, Sunnyvale, CA 94088-0842, USA

Copyright Information
Market Master is copyrighted. Copyright 1995 by RMC. You may not 
decompile, disassemble or reverse engineer any version of Market 
Master, nor modify Market Master itself without prior written 
consent from RMC, or act in any way that impairs the proprietary 
and intellectual property rights and interests of RMC and the like 
interests of the publisher or distributors of Market Master , and 
their successors and assigns.  Your use or continued use of 
MarketMaster constitutes your agreement to the terms and 
conditions herein.

RMC retains the title and ownership of the Market Master programs 
and support files but grants you a lease and license for their 
use, provided that you are the original owner of the program and 
abide by the terms herein.  Your license to use a particular 
version does not extend to later or other series or versions, nor 
their accessories, unless you have paid the applicable fee(s) or 
upgrade fee(s) to the Publisher R.M.C. for said series or versions 
for which such fees are in existence or applicable.

Except for the aforementioned lease and license, the author, 
manufacturer and publisher retain all rights to the Market Master 
program and support files and can make changes to them, or 
withdraw them from public use altogether, at their sole discretion 
and without notice.

In the event you have a special version for which permission to 
distribute or copy is expressly granted by the introductory screen 
of the program (as happens in a demo version), you may indeed 
distribute or copy it, provided:
(a) You distribute it with all original programs and support files 
and documentation; and
(b) You do not charge for more than a nominal handling fee of 
U.S.$10.00 while distributing the special version; and
(c) You do not distribute the special version beyond the date 
authorized.

In the case of a freely distributable version, the release of a 
later version number is automatic notice that all prior versions 
are superseded, no longer to be circulated or distributed, and are 
therefore withdrawn from public use.  Therefore, as of March 1, 
1995, all prior freely distributable versions of MarketMaster, 
with version number of 4.xx or lower may no longer be used or 
circulated.  All versions and series of MarketMaster bearing 
version numbers of 4.xx or less are superseded by the current 
version number 5.00

Versions of Market Master available
Market Master programs are available in the following packages:
*Market Master (E2), which provides end-of-day analyses with 
Forecasting Indicators 1 through 2;
*Market Master (E4), which provides end-of-day analyses with 
Forecasting Indicators 1 through 4;
*Market Master (E6), which provides end-of-day analyses with 
Forecasting Indicators 1 through 6;
*Market Master (I1), which provides BOTH end-of-day AND intra-day 
analyses with Forecasting Indicator 1;
*Market Master (I2), which provides BOTH end-of-day AND intra-day 
analyses with Forecasting Indicators 1 through 2;
*Market Master (I4), which provides BOTH end-of-day AND intra-day 
analyses with Forecasting Indicators 1 through 4;
*Market Master (I6), which provides BOTH end-of-day AND intra-day 
analyses with Forecasting Indicators 1 through 6;

Also available is a fully functional Trial Version which is 
identical to the 6-indicator Market Master (I6). There are 
numerous demonstration files in every disc, allowing you to see 
how the indicators performed using actual historical data.  We 
have ongoing R&D efforts to ensure that as financial markets 
change, our software will also be refined to better deal with 
them.

GET COMMERCIAL VERSION:
Our regular commercial versions E1 through I6 above provide you 
with up to six(6) different analyses or price forecasters and 
unlimited usage in terms of time and number of data files or 
symbols you can analyze.  If you want to continue to use 
MarketMaster after the trial period, order the commercial version 
well before the expiration of the trial version to get credit for 
the purchase price of the trial version and so that you can enjoy 
and profit from the amazingly accurate price forecasts without any 
interruption.

To order your commercial version, or upgrade MarketMaster, please 
use the accompanying Order Form.    We accept check, money 
order or cashier's check.  Please allow two to four weeks for 
personal checks to clear.



Copyright (c) 1995 by R.M.C.   
All rights reserved worldwide.     Ver.5.01      


Acknowledgment:  IBM, Investor's Business Daily, Wall Street 
Journal, dBase, MetaStock, CSI, S&P 500 and Lotus 1-2-3, Future 
Link, Future Source, AIQ, PRN, Computrac, and Warner are 
trademarks of their respective owners.








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