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

To: Wayners who wrote (13662)	2/8/2011 4:48:26 AM
From: GROUND ZERO™	1 Recommendation Read Replies (1) \| Respond to of 223298

Maybe, but a vertical price is a term I use for my model which has a very specific meaning for that phrase, take a look in the header of this thread to the definition... but, here it is taken from the header... I suppose I could also call it the stretch price... The Vertical Price: A vertical price is the price of maximum stretch during a rally or a decline. In a down market, there is a price where excessive selling becomes completely exhausted (at least for the meantime) and where buying is mostly likely to enter the market and begin a rally. This vertical price is NOT a target, there is no certainty that the market will actually reach the vertical price. But, if the market in fact hits that vertical price, then I will cover my short position and may go long but it is not buy signal, it's just a warning that the market is extremely oversold and that you should expect a brisk rally from that point. The inverse is also true in an up market. Interestingly enough, the market typically turns around within a few ticks of that vertical price, so it's a highly reliable indicator. On any new buy or sell signal I will also post the new vertical price so we can watch for it in advance. GZ