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

To: h_ who wrote (63117)	8/12/2014 11:30:37 AM
From: GROUND ZERO™	Respond to of 223614

The descriptions of all the components of my model are found in the header of this thread, but I copied and pasted the VP definition here for you... 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