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Investment Analysis Clubs / The BMW Method


Subject:  Re: BMW Assumption #1 Date:  3/11/2018  5:37 PM
Author:  SubGuy Number:  42215 of 42347

From a prior post:
"R = the Return Factor associated with one unit of RMS. (This is the RF of a stock when the price is at the -1 RMS line. The value of R reflects the 'tightness' of the BMW chart; R close to 1 is tight. Larger R reflects more scatter in the price data around the Average CAGR line.)
R can be calculated as (1 RMS price) / (0 RMS price) from the Klein charts."

The Klein charts actually do the calculation for us. The chart legend has a line such as:
-1RMS (RF=1.37)
In this example, the value of R is 1.37.
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