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Following is my analysis:
Short term:
Daily indicators show the market is overbought and all of my indicators
are in agreement. The market will back and fill for a while. I expect a major
pullback to bring it down to a an oversold condition.
Long term:
Weekly indicators show the market is still in oversold condition.
Recommendation:
Wait till the market pullback for good entry point.
Regards,
Melesse
> Resent-Date: Thu, 4 Dec 1997 11:11:48 -0700
> To: <chipa@xxxxxxxxxxxxxxx>
> Cc: <metastock-list@xxxxxxxxxxxxx>
> Subject: Re: Dow Jones et al
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>
> A rising wedge is certainly NOT a continuation pattern. It is the most
> vicious of all reversal patterns. You are confusing the rising wedge with a
> rising triangle. The normal rising wedge wipes out at least the whole of
> the wedge gains in about one third of the time taken to form the wedge.
>
> ----------
> > From: Chip Anderson <chipamy@xxxxxxxxx>
> > To: meyer@xxxxxxxxxxx; Dr C. Roffey <roffey@xxxxxxxxxxxxxx>
> > Cc: metastock-list@xxxxxxxxxxxxx
> > Subject: Re: Dow Jones et al
> > Date: Thursday, December 04, 1997 6:06 PM
> >
> > Hi Harley,
> >
> > A rising wedge is a triangle pattern formed when an up-trendline
> > (drawn by connecting successive bottoms) intersects (or appears like
> > it will intersect) a trendline connecting successive tops and the
> > intersection point is higher than the triangle's midpoint. Rising
> > wedges are traditionally interpreted as a "continuation pattern"
> > meaning that prices should continue higher at or just before the
> > trendlines meet.
> >
> > You can see this using the DJIA chart at
> > http://coolhistory.com/ChipsCharts/Markets - I've drawn the red
> > trendline connecting the tops and its easy to imagine the trendline
> > connecting the bottoms.
> >
> > FWIW, Triangles and wedges are the most common charting patterns and
> > are _very_ easy to get wrong. I _never_ trust them unless there is
> > confirming volume pattern (the volume within a triangle should be
> > falling as the triangle continues to form). Thus, unless they supply
> > actual volume numbers, I never apply triangle analysis to indices. On
> > other thing to keep in mind is that people often draw triangles with
> > 2-point trendlines instead of the much more reliable 3-point trendlines.
> >
> > Hope this helps,
> > Chip
> > http://coolhistory.com/ChipsCharts
> >
> >
> > ---Harley Meyer <meyer@xxxxxxxxxxx> wrote:
> > >
> > > In the spirit of learning can some one send a .gif to show me what a
> > > rising wedge is. Maybe a couple of .gifs to show a couple of
> > examples. I
> > > have heard this mentioned occasionally and still don't what what it
> > is.
> > > Same goes for some of the triangle analysis mentioned in the past.
> > > Harley
> > >
> > > Dr C. Roffey wrote:
> > >
> > > > Be Careful. The DJIA and the S&P are both at the top of rising wedge
> > > > patterns. If the S&P breaks below 950 ... watch out.
> > > > The UK FT 100 is in the process of forming a right shoulder for a
> > Head
> > > > &
> > > > Shoulders top. The Nikkei is nearly finished its technical rally. It
> > > > may
> > > > try to test 17500 but the next major move is downside.
> > > > I am not a happy chappy with these markets.
> > > > Regards
> > > > Dr Clive Roffey
> > >
> > >
> > >
> > >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> > _________________________________________________________
> > DO YOU YAHOO!?
> > Get your free @yahoo.com address at http://mail.yahoo.com
> >
>
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