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

To: KingHigh who wrote (15233)	3/10/2011 9:53:35 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 220756

Thanks for your very thoughtful comments... The definition of vertical price can be found in the header of this thread... but here it is below pasted into this post: The Vertical Price: A vertical price (VP) 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 may cover my short position and go long but it is not a 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. There's never a guarantee that the market would reach any vertical price, but if/when it does, then you can expect a sharp reaction from that price about 95% of the time. These VP's have absolutely nothing to do with gaps or trend lines or with any other technical analysis, it's a completely original phenomenon I discovered during the development of my model. So, you see that VP is not a target, and there's no guarantee that the market would ever reach it... a VP is the point of maximum stretch that a market can move before it has to snap back in the other direction... Yes, I always use the front month of the futures contract... I'm also amazed constantly how remarkably accurate my model is, and it gives me prices and future calendar dates when prices and time meet... The dates associated with the VP are deadline dates, and their purpose is that the VP must be reached no later than that date or the market will change direction without reaching the VP... I hope this was helpful... ask all the questions you wish, I'm always glad to help clarify if I can... GZ