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Fellow RT's
I know the attached chart is "after the fact" since it is only updated through
Thursday but I thought i would post it because many of you have recently
received the indicators i posted on this site and I wished to give a quick
interpretation, so you can better utilize those indicators.
In addition my database supplier site is currently down and i don't know when
I will get a chance later in the weekend to post this.
I also think it will add some clarity to the price/indicator debate.
Price in my mind is always most important, and as a result the x-bar channel
indicator always carries the most weight in my indicator analysis This
indicator said Thursday night that because of the three points plotting
outside the channel, the probability of a down move must be strongly
respected.
The automatic trend line indicator was trying to draw a support line and the
10 day linslope2 indicator is turning up. The longer term linslope2 indicator
(13 day) was not giving a strong confirmation.
So Thursday/Friday together would have been interpreted as a critical days for
trend identification.
A plot within the channel on Friday would have confirmed the turning pivot,
anything else would have said the down trend was still intact.
A Breakout Position Trader would have gone long on a move above Thursday's
high/ Short on a Trend line failure.
IF there is no significant change to the Price pattern then based on Fridays
price action and that the lower trend line was broken, I'll be typically
shorting rallies during the next few weeks. My first price target for the
OEX is 545(not that far away at this point) and then 535.
Hope this is of some benefit.
All the best,
Terry
Attachment Converted: "c:\eudora\attach\XBAR3.gif"
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