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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Al Greenleaf who wrote (10793)	1/17/1998 6:40:00 PM
From: Doug R	Read Replies (3) \| Respond to of 79263

Al, The system I use for the Dow drops is done using only the 13 day RSI (Geez, now I've gone and done it, now it'll get discounted and I'll have to find a new one). Go to the last time the Dow dropped and draw a line from the bottom (bottom X) of the RSI there to the next bottom of the RSI that's under 50 (bottom Y). Next, go to the top between those two bottoms (top A) and draw a line down across the next peak (top B). Then (using 2 other similar lines) draw a line from bottom X to the very first notch down after top A. If that line becomes resistance to the RSI (which it does this time) draw a line from top B down across the next top (top C) the intersection of lines BC and XY is the first trouble spot. In the current case we have another bottom after bottom Y. Call it bottom Z. A line from bottom X to bottom Z intersects line AB and is the next trouble spot on Feb 1 if the RSI can stay above the intersection of XZ and BC. Currently BC is intersecting XY so I would expect the Dow to have a large move on Mon. In other drops it has some more complicated stuff involved since the "notch line" was broken to the upside on the first try. This time it looks pretty straightforward so it makes for a good basic example. Doug R

To: Al Greenleaf who wrote (10793)	1/17/1998 7:09:00 PM
From: Doug R	Read Replies (2) \| Respond to of 79263

Al, In my first attempt to describe the Dow drop system I ran into some distraction and it came out all wrong. You'll have to replace XY with XZ at the end of this statement, " Then (using 2 other similar lines) draw a line from bottom X to the very first notch down after top A. If that line becomes resistance to the RSI (which it does this time) draw a line from top B down across the next top (top C) the intersection of lines BC and XY is the first trouble spot." Yikes! Doug R