|
PureBytes Links
Trading Reference Links
|
Hi Wong -
You have an interesting one here. Here are some of my thoughts as well
as an attached chart.
1) 5/35 Elliott Oscillator shows divergence between Wave 3 and Wave 5
2) 14 period RSI may be switching from a downward bias to an upward one. In
downtrends the 14 period RSI usually oscillates between 20 and 60 while in
uptrends it's 40 and 80. First you see a divergence in the RSI from the
November 99' high to the January 00' high. This was followed by the RSI at
present only retracing back to the 40 level a sign of a possible shift to an
uptrend.
3) I ran a targeted Wave 5 from the Minor Wave 3 using a proprietary study in
GET called a MOB (Make or Break). This bar is used many times to look for
reversals. The bar seems to have held nicely. TLCV then made a move up to
19.88 and retraced back exactly 78.6% to 12.50 a typical Fib retracement #
for either a Wave 2 or B. Another proprietary study called the Ellipse drawn
from the Wave 5 low to the 19.88 high has also held prices the last 3 days at
this 12.50 Fib level. Just so you know how I use these studies,
theoretically, Ellipses hold Corrections and MOB's hold Impulse moves.
4) With all that said, I have set up on the chart a Regression Trend Channel
and a 6 Period MA of the highs and a 6 Period MA of the lows offset by 4
Periods. For the aggressive Trader one would buy one tick above the high of
the first bar that closes above the Regression Trend Channel. And for the
more conservative one a buy would be placed 1 tick above the high of the
first bar that closes above the 6/4 MA.
Just my 2 cents - Lenny
Attachment Converted: "f:\eudora\attach\TLCVdaily.gif"
|