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Has anyone worked with this concept? Any specifics as to how it's
calculated and quantified?
The following was posted to one the TSC forums:
"Tom DeMark's book, New Market Timing Techniques, explores a concept called
"duration analysis." He uses duration analysis to determine whether or not
an overbought/oversold condition on an oscillator is indicating price
reversal or price continuation. According to his work, a "mild" overbought
condition (i.e., one that lasts less than five to six consecutive days)
precedes price reversal, whereas a "severe" condition (i.e., one that lasts
more than six consecutive days) precedes price continuation.
Obviously, there's a little more to it than that, but you get the idea.
(Interestingly, my charting of the S&P just fulfilled the severe criteria
last Friday). It's a fairly simple concept, although the book itself is
pretty darn complex."
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