Hi Bob,
One general example is here, in a chart that is, interestingly enough,
an example of a bottom.
decisionpoint.com
For the down trendline, draw from the peak in February 1994 through
the lower peak in March 1994, and you arrive at the resistance in June 1994 (looking solely at the a-d line).
Then, look horizontally to the left, to the mini peak of the minor
rally in April , after the late March sell off. Then in May and June
that same horizontal level proved to be resistance.
The down trendline and the horizontal line met in June, 1994,
and proved to be a formidable landmine.
There are probably numerous other examples in the past -
where the heck is Bobby when you need him?
Right now, it is an identifier of a potential landmine. If we stop here and rollover to the downside, the market has problems. If we breakout above this trendline, we are off to the races.
Vitas |
