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

To: Seismo who wrote (33950)	6/21/2012 9:07:28 AM
From: GROUND ZERO™	Respond to of 222068

Well, okay, I suppose you could call it anything you like, but here's the definition of VP in the thread header... VP means Vertical Price (VP), since that's where the market has gone vertical at its most maximum stretch point... 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 for a quick trade 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. GZ