I have followed Ted's chart work and comments for about 3+ years, and he references the 6% rule as you state but must be coming from above 70% or below 30% if my memory serves to be a valid trend change signal
Hmm
I think you are both right really...it's a 6% drop from above 70% but the drop must come under 70% ...in other words if the bullish percentage was at 80% and you had a 6% drop of 4.8 percent...it wouldn't trigger the sell....it would have to come back below 70%. That's the way I understand it anyways.
Funny traders,...sometimes we seem to lock on to anything and everything.
Ted may be a good guy,....but I'm not ready to swallow someone's RULE of the Below 70 stuff without looking at a chart first !
And based on this BPINDU chart,...........it doesn't seem like much of trade either.
Wait,......he didn't say it ..........only works on ONE BP chart,,,c'mon.
He's talking about all BP charts in all sectors,....and the RULE,...well I wouldn't trade it that way with your money.
I think some needs to back test that.....entry and exit theory a bit more.
Hmmmm.
Shot at 2007-06-2
Shot at 2007-06-28
Edited by Mr Dev, 28 June 2007 - 11:58 PM.
