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Re: Support and resistance



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Glen,
    I posted this to the group last June - Lenny

Here is a post I sent to a Metastock group on June 16 describing the RSI 
Positive Reversal:

Walter et al.  As I mentioned before a Positive Reversal happens when an 
oscillator such as the RSI has a lower valley low at the same time the price 
moves to a higher high.  This was developed by Andrew Cardwell to use for 
price forecasting.  You label (3) oscillator pivots, (2) oscillator lows 
(A&B) and the highest oscillator high between points A&B (C). The Positive 
Reversal price projection formula goes as follows: (B-A) + C = Price 
projection/target.  The price data associated with oscillator points A, B & C 
are the #'s you throw into the above formula.  I have attached a Dow weekly 
chart with (3) examples of Positive Reversals of which one may be taking 
place right now.  Let me know what you all think - Lenny.

Attachment Converted: "f:\eudora\attach\!DJIweekly.gif"