Definition of T-Graph

T-Graph is gap distribution trend graph. It measures the gap distribution and plot the movement of a gap in a range determines by the performance of each system. By understanding the normal or extravagant behavior of gap pattern, we hope to lead to a better investment profits..

The study of T-Graph takes considerable experiences in interpreting the various patterns using various case studies to be able to fully understand the concept and benefit of it.

I will not be giving full details of the entire pattern in this part of the tutorial but I will begin by describing the various part of the graph.

Below is a typical graph for System number 2457.

The value on the x-axis is the draw number of each hit. The right column no. 1865 is next draw number plotted to project the current value. The y-axis is the deviation value of the gap movements. It is calculated using the history gap distribution value. The value of deviation varies with each system number, the average is about 0.8. This movement of gap trend is represented with the red line.

In any graph analysis, it is necessary to use the moving average line to watch out for the trend direction. Moving averages are use to smooth out signals, but keep you with the major trend. MA1 and MA2 are the moving average in T-Graph. By default the system will set MA1 to 3 hits ahead while MA2 is set to 6 hits.

When a green line cross above blue line and the red line is above both of the moving average, it is a clear signal that the gap distribution is going uptrend. This signal is sometime known as crossover. If this happen, you should be able to see shorter gap than long gap. In layman term, it is going to have more hit coming. The reverse applies to the downtrend.

There are also some graphs that cannot clearly see a trend such as system 0469 as shown below.

This type of graph shows that this system number is well balanced in the gap distribution. The determine factor would be to read the red line direction. Up direction means shorter gap while the down direction means a longer gap.

Next lesson I will cover another topic on "What is the benefit of using the T-Graph".