6 replies to this topic

[A-ha]

Edited by xD&Cox, 16 March 2007 - 03:02 PM.

[Russ]

Maybe

Edited by Russ, 16 March 2007 - 03:04 PM.

[traderpaul]

This pattern is very bearish.....This is what Don Wordon wrote on the book The Street Smart Chart Reading..... When the price soars thru the top of ascending channel. It is one of the best gauges of "overextention" or "overbrought" that I know of.....It represents a pace that is hopless sustainable.....Often a good short selling opportunity.....

[nimblebear]

Maybe

long way down to 75. But that would never happen.

[Iblayz]

xD.....does your chart reflect the prices as dividend adjusted (as in going backward as well as today). SPY distributed .55127 per share today. So if the prior prices were not adjusted the proper closing price today would be 139.08 for valid comparison. Might not make a difference. Just asking. Oops...in edit....stupid me. I don't think that is a daily chart. Helps to pay attention to detail sometime.

Edited by Iblayz, 16 March 2007 - 04:16 PM.

[Russ]

Since it overshot the channel on the upside, does that mean it will overshoot the channel on the downside - which means that the spx would go to 1220 or so. What does the book say on that? Russ

This pattern is very bearish.....This is what Don Wordon wrote on the book The Street Smart Chart Reading.....
When the price soars thru the top of ascending channel. It is one of the best gauges of "overextention" or "overbrought" that I know of.....It represents a pace that is hopless sustainable.....Often a good short selling opportunity.....

[traderpaul]

Since it overshot the channel on the upside, does that mean it will overshoot the channel on the downside - which means that the spx would go to 1220 or so. What does the book say on that? Russ

This pattern is very bearish.....This is what Don Wordon wrote on the book The Street Smart Chart Reading.....
When the price soars thru the top of ascending channel. It is one of the best gauges of "overextention" or "overbrought" that I know of.....It represents a pace that is hopless sustainable.....Often a good short selling opportunity.....

Here are more quotes from the same book.....
Remember in actual pratice, you have other tools to supplement or corroborate the "channel buster".
You get paid to take risks, to move on to probabilities, not on certainties. If you wait to find out, your curiosity will be slaked, but you won't make any money.