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In a message dated 98-07-23 10:21:23 EDT, derivatives@xxxxxxxxxxx writes:
<< Bob I find that s/r levels are more appropriately found if you launch
the s/r level just a little to the left of the absolute apex of a high or
low. Do you find the s/r to be a better fit than from launching from exactly
the apex of the high or low. I theorise that this is because new
buyers/sellers , that create the trend change, dont begin to enter markets
at exaclty the apex turning point but generally a little bit before the apex
turing point. This I feel fits in very nicely with Levines theory on which
the algorithims are based on
regards Peter >>
As you pointed out, Levine describes his theory and application in 18 well
written monographs on his website(http://www.winmidas.com). It takes awhile
to read through them all and what I came away with in selecting the launch
points is to select a point where the psychology changes. Panic lows are a
prime choice. Also the grand cycles in Elliot Wave should make valid anchor
points. Levine says to pick days ahead of or past the price low in order to
get a better fit of the line with following supports. This all looks better
on the Price plotted vs Cumulative volume rather than price vs time. When it
comes to using the Top Picker, sliding the C bar for a nonpenetrating fit
seems to work quite well.
BobR
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