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Jim:
I would like to see some comment from others more experienced but
I do have an interesting story to relate in this connection. Years ago
there was some commodity seminar given on this pattern as a trading system.
I'm sorry I don't recall who put on the seminar and that these details are
sketchy. The idea was to sell on the fifth move up which would record a
third higher high--the pattern described by E&M as the classic megaphone.
About a year or two after the seminar this pattern fell apart in real time
trading. It seemed that commodities would fall back some--or
consolidate--after the fifth leg but then continue up-
One would need to obviously determine how valid this pattern is for
stocks only by identifying and backtesting over along period of
market history.
Charles
-----Original Message-----
From: Jpilleafe@xxxxxxx <Jpilleafe@xxxxxxx>
To: realtraders@xxxxxxxxxxxxxxx <realtraders@xxxxxxxxxxxxxxx>
Date: Wednesday, March 01, 2000 6:55 AM
Subject: [RT] Dow-30 and S&P500 "Top"
>Following was received from Chris Terry in NYC,...
>thought others might find interesting. Any thoughts on the
>predictability or meaning of the broadening or "megaphone"
>pattern in the Dow would be appreciated. Regards, JIM Pilliod
>***********************************************************
> <A HREF="http://hometown.aol.com/stockindextrader/dow01.html";>HotDog
Express
>for AOL Hometown Document</A> (for Dow top)
>or... http://hometown.aol.com/stockindextrader/dow01.html
>
> <A HREF="http://hometown.aol.com/stockindextrader/daymonth.html";>HotDog
>Express for AOL Hometown Document</A> (for S&P500 top)
>or.. http://www.hometown.aol.com/stockindextrader/TRADE2000.html
>
>for other charts that Chris has posted (free site)...
> <A
HREF="http://www.hometown.aol.com/stockindextrader/TRADE2000.html";>HotDog
>Express for AOL Hometown Document</A>
>or... http://www.hometown.aol.com/stockindextrader/TRADE2000.html
>
>
>
>
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