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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude

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To: bruce-l who wrote (36683)8/28/2000 3:30:51 AM
From: Doug R  Read Replies (1) of 79313
 
Bruce,

5/15
6/21
8/24

On each of the above dates the 3 dVOLW of the Ratio turned down after or during a paste on the 3 dRSI of the Ratio.
The S&P was at swing highs all 3 times. The 13 dCCI of the Ratio topped 100 all 3 times.
5/15 was followed by a 100 point drop on the S&P.
6/21 was followed by a 45 point drop.

7/19 a turn down on the VOLW occured as the RSI went overbought. This signal was a couple days late but still yielded good results on a spoos short as the S&P dropped 80 points afterward. The 13 dRSI did not get over 100 this time.

1/6 VOLW turned down as the RSI hit overbought but the 13 dCCI of the Ratio had just broken over 100 and was still rising. The next day the VOLW turned back up in correlation with the CCI strength. On the 1/12 close both the CCI and VOLW turned down. S&P exit the next day was one day early for a 120 point drop on the index.

3/20 saw the VOLW turn down with 100+ CCI following an overbought RSI reading. S&P exit the next day was 3 days early for a 200 point drop on the index.

Looks like, along with the 3 dRSI and the 3 dVOLW, the 13 dCCI is a necessary part of the equation when reading the Ratio.

Lab lights out for the night,
Doug R
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