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Love to see these down days.
If all the parts (that I had presented) aren't there, then something will go
wrong.
Up/Down Volume ratio was low today - 0.379. Volume is moving up.
So we know which way the market will move.
We are at the first line of support. If you had saved the last .gif there was a
blue line around 7900. I didn't say anything about it. We all know how to draw
support & resistence lines give or take a few points. The next line of support
is around 7650.
Keeping in mind our 4-5 points we watch for & the volume research DJIA forcast
by Liebovitz. A move to the 200 period MA within Epsilon (E) could be
reasonable.
Epsilon (E) is a greek letter used in math as a variable. The variable is
usually a small number.
For example, the limit of 2/E as E -> 0.
Read as, the limit of "2 divided by epsilon" as "epsilon goes to zero". Note
epsilon will never equal zero buy the normal rules of calculus. Hence epsilon
is a very small number in this example. Since the solution is infinity.
Intuitively, epsilon is not a small number but something close to some other
number. In this example epsilon is close to zero. In my example, Epsilon is
close to the 200 day MA. Epsilon might be 200 points, it might be 100 points
below. The point is the intuition here.
Harley Meyer
meyer093@xxxxxxxxxx
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