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Granville's Climax Indicator (CLX)


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#1 Geomean

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Posted 08 February 2012 - 06:29 AM

I bought Joe's 1976 book and created this chart in order to see what this indicator is saying/has said.

If anybody has followed the record of the CLX indicator or has experience reading it, I'd be interested in how you interpret it's current readings.

TIA

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#2 Rogerdodger

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Posted 08 February 2012 - 09:08 AM

Let me take a wild guess: "snort.....watch the sky....675 ono"

#3 TechMan

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Posted 08 February 2012 - 09:13 AM

Geo - It's an oscillator. Until this market changes its personality again, I'd read any "oscillating" indicator with a grain of salt.

#4 colion

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Posted 08 February 2012 - 09:23 AM

Here is a blog that follows CLX: CLX Blog

Edited by colion, 08 February 2012 - 09:24 AM.


#5 Rogerdodger

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Posted 08 February 2012 - 09:25 AM

It may be very valuable, but not the Holy Grail:
February 12th, 2005
Granville Predicts 2005 Dow Crash
"Joseph Granville, who accurately forecast in 2000 that U.S. stocks’ bull market would end, is at it again. He expects the Dow Jones Industrial Average to suffer its biggest annual loss this year since the Great Depression.

“We’re in the critical portion of a coming collapse and the market’s screaming to get out,” said Granville in an interview from Kansas City, Missouri. “Everyone’s bullish. There’s going to be a tremendous surprise and it’s going to be to the downside.”

"Granville, publisher of the Granville Market Letter since 1963 and a technical analyst for almost 50 years, also foretold a stock-market decline in 1976. He misfired in 1982 and 1995 by calling for losses before share prices surged.
http://www.ritholtz....2005-dow-crash/

One of his CLX associates also posted:
"The mother of all bull markets is ded ahead."
1/16/2002 10:34PM
And this more recent one:
"1374 will never again be seen in our lifetimes...mark this down" Aug. 2007

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&st=2005-09-01&en=(today)&i=p90953413674&a=123330694&r=8350.png

Edited by Rogerdodger, 08 February 2012 - 09:49 AM.


#6 dasein

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Posted 08 February 2012 - 09:42 AM

Wollanchuck popularized it on the old FF board - one of the old timers that kept it by hand, IIRC, was Joanne M.
best,
klh

#7 selecto

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Posted 08 February 2012 - 11:37 AM

Wollanchuck popularized it on the old FF board - one of the old timers that kept it by hand, IIRC, was Joanne M.


It still goes on. Snorty has his own board at Crystal Ball
(from which I have been evicted - go figure :)) where the
blah, blah, blah continues unabated.

Edited by selecto, 08 February 2012 - 11:40 AM.


#8 Rogerdodger

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Posted 08 February 2012 - 11:05 PM

Jan 23, 2012
DJIA to Fall 4,000 Points in 2012, Granville Says
http://www.bloomberg...video/84758540/

"DOW DOWN 1,000 points every quarter."

based on OBV
next couple of weeks: "STRAIGHT DOWN!"

The "STRAIGHT DOWN!" decline began 2 1/2 weeks ago... :huh:


:D

Edited by Rogerdodger, 08 February 2012 - 11:18 PM.


#9 Geomean

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Posted 09 February 2012 - 06:11 AM

Thanks everyone for your responses. Interesting history. It is definitely not a broadly used signal. Aspects of the CLX are intriging. Granville's commentary in his book is more comprehensive and intelligible than what's available on the web. (Joe's a neighbor when we are in town) Now that I've got an Excel version and the math down, I might try programing it using the ADE facility in TS, which already has an OBV facility. I'm now reading Mark Leibovit's new book "The Trader's Book of Volume" which led me to the Klinger, which in turn led to the Klinger-ATR, and the Goslin trigger -- which are also very interesting, especially intra day. This idea of volume leading price seems worth studying in greater detail. BTW, the CLX dropped yesterday to 3 (from 12) and crossed it's 3 DMA as the Dow was making new highs, as I await (shortly) completion of the Combo™ and Sequential™ countdowns on various of the major indices. Joe Granville observed in his 1976 book, pg 119: "... if the Dow average jumps 10 points on a given day and the CLX falls from +8 to +4, there is a definite loss of technical strength on the rise in the average and a decline would be expected. How much of a decline would depend on where the market stood in the normal cycle. The CLX is especially useful when the Dow is making either new highs or new lows because those could be critical market turning points, and the critical nature would be denoted on whether the CLX confirmed the new high or low." As the chart above clearly highlights, the CLX was not confirming the new low in Oct 2011. Again, thanks for the feedback and it's collegial nature.
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#10 Echo

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Posted 09 February 2012 - 09:11 AM

Geo, one more thing. Don W. has stated that CLX itself in a vacuum is not as useful as combining it with ewave and Fibo methodologies. He believes incorporating it into a network of methodologies is what gives CLX it true advantage. Doc