Jan, Bruce, Dave, Anyone, HELP!!
I've been asked to assist a stock club in attaining a basic understanding of P&F. This will be good experience for me and a wonderful example of the blind leading the blind. (Now let's see ---- have I offended someone with this statement? Do I hear PC police sirens?)
Anyway, early on I'll be spending some serious time with the Bullish% Indexes. We all know how important they are. So, I've tried to create definitions that a complete P&F newbie could read and then walk to a chart and make the calls. (I recently asked some folks to read and apply the definitions in the monthly Chartcraft book and Mr. D's, and they didn't do well at all. That's why I created these.)
Please review the definitions below. If you find holes, gaps, mistakes, etc., then say so and we can kick it around. Otherwise, I'll tell the stock club that everyone at the SI P&F site said these definitions were OK. (Note: I've not included Bull Top, Bear Bottom or a couple of Burke's other items because the DWA Bullish% Indexes don't depict them.)
BULL CONFIRMED: Occurs when a column of X's moves above the previous column of X's.
BULL CORRECTION: Occurs when a column of X's in Bull Confirmed risk status reverses down to a column of O's and 1) does not move below the previous column of O's, or 2) reverses down from above the 70% level but does not move to the 68% level or lower.
BULL ALERT: Occurs when a column of O's in Bear Confirmed risk status drops to the 30% level or lower, and then reverses up to a column of X's and does not move above the previous column of X's.
BEAR CONFIRMED: Occurs when a column of O's moves below the previous column of O's.
BEAR CORRECTION: Occurs when a column of O's in a Bear Confirmed risk status reverses up to a column of X's, and does not move above the previous column of X's.
BEAR ALERT: Occurs when a column of X's in Bull Confirmed risk status moves to the 70% level or higher, and then reverses down to a column of O's that drop to the 68% level or lower, and does not move below the previous column of O's.
Thanks all, and have a great Mother's Day weekend.
Eric |
