Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: livelongandprosper who wrote (12657)	1/17/2011 12:01:50 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 223204

Yes, you're correct, a VP is a measure of the maximum stretch a price can reach in one or another direction before the move is either temporarily or completely exhausted... and, yes, you're right, if we get a reverse signal before that VP is reached, then it is a measure of the strength or weakness of that market... as far as percentages go on reaching the VP, I don't actually keep stats on that, I can't even take a guess because very often a trend can change without getting close to the VP, and sometimes the VP to the tick turns the market, and sometimes prices bounce off the VP for a day or two, then hangs around the VP before continuing the same trend... the VP is a place to lighten up on your position or take an aggressive reverse position... if I had to take a guess, I would say maybe about 30% of the time we can see prices hit the VP... of course, the current SP market has been hitting the upside VP with constant regularity, this is extremely bullish... Also, gold came very close to its upside VP before turning lower and issuing a confirmed sell signal... the recent upside VP for gold was 1427.20, the market reached 1424.40 before turning lower... but it doesn't mean that gold is weak, just that IF we did hit the VP, it definitely would not be a place to buy, it would be a great place to reduce your position and/or take an aggressive short... I'm very interested in where and when we get a buy signal for gold, if this market is still in an up trend, then it could be a great trade... GZ