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Random article: Chicago PMI Definition
Purchasing Managers' Index of Chicago (Chicago PMI) represents a summary report of surveying Chicago managers specializing in industrial purchases. Obtained results allow evaluating current conditions of manufacturing orders, inventories as well as price dynamics in this manufacturing field. Should the final value be under “45-50” level, it tells about negative economic tendencies. This index is announced on a monthly basis on the last business day at 10:00 a.m EST (New York). Its market influence is strong, because forecast of PMI published later depend on the index. Growht of Chicago PMI is accompanies by consolidation of national currency.
In measurement formula for Joe Granville indicator, close prices compared with the purpose of adding or deducting of volume, whereas Williams' indicator open and close prices are compared. Marc Chaikin compares close prices with the middle of range from minimum to maximum. The history of indicator is interesting on its own. In Larry Williams formula, Chaikin substituted open price for price of range. The reason of change was not that he considered it wrong, but that he was not able to find data on prices of opening. That time prices were taken from daily papers, which, due to some reason, stopped publishing prices of opening.
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