6 replies to this topic

[Douglas]

The plot below is an support/resistance study of the DJIA. Angles in the past or their compliment (red) are often repeated in the future (blue). If a top is in of some sort, the -56 or -71 deg resistance angles ought to contain the move down from above. The fall should be stopped by the 34 or 19 degree support angles. Next best guess would be one of the Fib retracement levels.



The translation from METASTOCK to PNG to IMAGESHACK scambled some the locations of the angle tags. Hopefully you can connect them. Steepest is 71, next 56, next 34 and then 19 degrees. Got this technique out of an old book on how to draw trend lines into the future based on angles which occurred in the past.

The translation from METASTOCK to PNG to Imageshack must have scrambled some of the angle tag locations. The steepest is 71, next is 56, next is 34 and finally 19 degrees. Got this technique out of an old book with a chapter on how to draw trend lines into the future based on past trend angles.

[relax]

you could also use 12.795 as the top, then 13.330 would be 1.618 of the wave and 13.029 would be 1.272 of the wave

which could be the targets for any move down

Cheers

The plot below is an support/resistance study of the DJIA. Angles in the past or their compliment (red) are often repeated in the future (blue). If a top is in of some sort, the -56 or -71 deg resistance angles ought to contain the move down from above. The fall should be stopped by the 34 or 19 degree support angles. Next best guess would be one of the Fib retracement levels.



The translation from METASTOCK to PNG to IMAGESHACK scambled some the locations of the angle tags. Hopefully you can connect them. Steepest is 71, next 56, next 34 and then 19 degrees. Got this technique out of an old book on how to draw trend lines into the future based on angles which occurred in the past.

[Douglas]

That's one of tricks to this technique. Once the move starts, guide angles, key pivot points, or Fib starting points are adjusted to fit the action. This projects the path forward. Choosing the right starting points is a bit more art than science. Even with this draw back, this technique has some real value. For example the 56 and 71 degree guide angles off what I think is a top imply that things should get ugly early this week. If they don't, it would cast doubt on whether a top of significance is in very quickly letting me put my tail between my legs and cover.

[relax]

exactly it's about finding the wave which gives us some answers until we find a new wave which give us the new answers

I am not sure next week will tell us a top has been found

thursday's action was interesting - da boyz could be getting ready for a period of falling prices

but seems like a lot of people are expecting a crash

next time could and probably will be entirely different - but as I said again and again

the big days for my charts are on CPI and PPI dates +/-day, until those dates I assume that the trend from the previous month continues

next CPI and PPI date is june 14/15

That's one of tricks to this technique. Once the move starts, guide angles, key pivot points, or Fib starting points are adjusted to fit the action. This projects the path forward. Choosing the right starting points is a bit more art than science.

Even with this draw back, this technique has some real value. For example the 56 and 71 degree guide angles off what I think is a top imply that things should get ugly early this week. If they don't, it would cast doubt on whether a top of significance is in very quickly letting me put my tail between my legs and cover.

[Douglas]

If the hidden inflation of quality and durable things ever bubbles through the WalMart adjusted CPI numbers, it will hit the fan. One shoe to drop is the new war funding bill which starts raising the minimum wage. This should increase the WalMart world's cost of doing business. Interesting to see how fast or if all this shows up in the CPI. Also the China trade bills working their way through Congress have the potential for raising the Walmart world's cost of goods if they pass or force China's hand. But neither of these is in play for June 14, just down the road.

[Douglas]

Monday morning overseas markets are uniformly higher. If the US market follows Tuesday, it will scrap the formation shown in the plot very early on. The same angles will simply shift to the next top pivot that appears to form. Better stopped than stomped!

[relax]

good points, appreciation of chinese currency should push up prices at walmart

But to me the CPI seems to be based on a game and not really reality

Core CPI is manipulated to fit the game plan of da boyz and fed

my theory is that Fed have no intention of lowering rates cause of the dollar

therefore I think that next inflation data might well come in too high

we will see - the only thing i know is that for the past two years cpi and ppi dates have been so crucial for my charts - there is a good probability this will be the case again

payrolls data has funny enough not been that important for the trend of my charts even though this event is often labelled as soo important

but this week it could be more interesting because it will be released the day after a very very week gdp figure

i also know that mr. fibonacci will be relevant like he always is ;-)

If the hidden inflation of quality and durable things ever bubbles through the WalMart adjusted CPI numbers, it will hit the fan. One shoe to drop is the new war funding bill which starts raising the minimum wage. This should increase the WalMart world's cost of doing business. Interesting to see how fast or if all this shows up in the CPI. Also the China trade bills working their way through Congress have the potential for raising the Walmart world's cost of goods if they pass or force China's hand. But neither of these is in play for June 14, just down the road.