Zweig volume thrust
#1
Posted 18 August 2007 - 06:02 PM
While discussing advancing/declining volume in his book, Winning on Wall Street, Martin Zweig states, "Every bull market in history, and many good intermediate advances, have been launched with a buying stampede that included one or more 9-to-1 days" ("9-to-1" refers to a day were the Upside/Downside Ratio is greater than nine). He goes on to say, "the 9-to-1 up day is a most encouraging sign, and having two of them within a reasonably short span is very bullish. I call it a "double 9-to-1" when two such days occur with three months of one another."
source: http://www.marketscr...a...HF=&Num=110
Mortiz did some excellent research last year on this.
http://forums.techni...post?id=1226364
#2
Posted 18 August 2007 - 06:11 PM
The future is 90% present and 10% vision.
#3
Posted 18 August 2007 - 06:20 PM
Great post, most interesting.
Can I ask...can you recall when the most recent one was? I recall reading somethingmaybe earlier this year?
TIA
The one you're looking for is probably Airedale's. Does March 6th ring a bell?
http://www.traders-t...?...81&hl=zweig
EDIT: Although more than 3 months have elapsed, it's interesting to note that we're getting this signal at roughly the same price levels. Just an observation.
Edited by spielchekr, 18 August 2007 - 06:24 PM.
#4
Posted 18 August 2007 - 06:24 PM
The future is 90% present and 10% vision.
#5
Posted 18 August 2007 - 06:25 PM
Thats the one Spiel, most grateful to you.
If there was a 9:1 down capitulation, followed by a 9:1 upthrust, I gues that would be pretty bullish, and even more so if it came within 3 months of the previous upthrust.
Good trading to you.
#6
Posted 18 August 2007 - 06:38 PM
Great post, most interesting.
Can I ask...can you recall when the most recent one was? I recall reading somethingmaybe earlier this year?
TIA
March 6 & March 21, I believe.
#7
Posted 18 August 2007 - 06:45 PM
#8
Posted 18 August 2007 - 06:45 PM
Thanks for posting this. It has been on my mind lately since I am still short the market.
One thing I noticed at the site listed below is that when you have a couple of 9 to 1
down days, like we have had recently, that this usually means downside exhaustion.
Then when you get a 9 to 1 up day the market will chop around for a few weeks and then move
higher. You usually get a test of the lows but you usually don't go below the previous low.
The last time we had 9 to 1 upside days before Friday was in Feb. or March.
Up Thurst / Down Thrust Indicator
Thanks again for the posting. There is enough information in your links to answer most questions
anyone could have about this topic.
#9
Posted 18 August 2007 - 06:50 PM
When you Open the volume AD ratio up over 17 (it spiked as high as 163 per stockcharts 1-min chart) on a 2% gap up, it's probably a decent bet you'll close the ratio high enough to qualify for a Zweig volume thrust
Some signs are really obvious, aren't they?
[img]http://tbn0.google.com/images?q=tbn:WwOIK-G7BS82vM:http://nimbleswitch.com/journal/images/this_sign_has_sharp_edges.jpg[/img]