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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: marginmike who wrote (83877)	6/7/2003 3:42:18 PM
From: Paul Shread	Read Replies (2) \| Respond to of 99985

There is no definition of expected gains or time for Dow Theory signals; a buy signal is rising intermediate peaks and troughs for the Industrials and Transports, and a sell signal is the opposite. The record is very good - 24-1 from 1897-1998 is my estimation by looking at a couple of sources (one has it as 24-2, but the source at the time of one of the failures did not list it as a signal, so apparently it wasn't recognized at the time). Returns until the next sell signal range from a loss of 7% to gains of 226%, and everything in between. Page 46 in Pring has a good summary.