Nicholas,
There's several "categories" of price/technical activity that the 89, 3, 5 spans across. On a chart basis it boils down to any of the types of patterns that can be said to be ascending triangles. For example the neck line, head and right shoulder of an inverted head and shoulders is actually an ascending triangle as is a large portion of a classic cup with handle. The 89, 3, 5 can also be applied toward my favorite chart formation at 3 different pivots. The Peg line is the most recently "discovered" pivot for which it is helpful. SPYG is currently dealing with consolidation in conjunction with its recently established Peg line and as such the 89, 3, 5 will verify a successful break over the Peg line if it occurs.
On a technical (rather than charting) level, the 89, 3, 5 can be used in conjunction with MACD uptrends that cross the 0 line as the indicator itself is "forced" over 0 by the uptrend line on significant volume.
Also breaks above resistance lines in the 13 dRSI can also be used as a cohort of the 89, 3, 5.
One great technical partner to it is the 233, 21, 34 stochastics since on the more serious moves, they tend to verify each other.
I also use activity in the 13, 8, 8 stochastics to gauge upcoming near term strength that the 89, 3, 5 may exhibit at crucial junctures.
A lot of this stuff is discussed in the seminar and the round table session afterward.
It looks like the 89, 3, 5 will get quite a bit of attention at the Orlando seminar on Feb 6.
Doug R |
