Ted,
If I understand you question, you cannot go backwards with this operation, only foward in time. There are likely earlier patterns that indicated the high for August, but you need to go back to older charts.
Better yet, if you understand the function, you can easily see where then next resistance will be. Simple, just bisect the October high and low just made. Always use the biggest wave on the chart. Run a line from those August lows in the SP and extend it. On The DOW, the lowest low was made in September. For the DOW, I would use the September low. You will see a rising line showing that resistance will be higher the longer it takes in time to get there. On the SP, above 1000, just over new highs. For the DOW, the line crossed 8100 yesterday and extends higher further out it time.
This is only a basic application. You need to understand what it means when prices pass through those lines and keep going or when they fail to reach those lines and turn the other way. First, get the basic, then we can go on.
GZ |
