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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: bearshark who wrote (17928)	5/14/1998 8:18:00 PM
From: Vitas	Respond to of 94695

Shark, in response to your previous Lindsay question, the reason that the 4/15/98 new Dow high was not counted is because you need a declining zigzag net a-d pattern where on each lower peak of the zigzag the Dow makes a new high with a lower net a-d figure. The first peak was on 4/14 with 796 net advances. The next day the Dow closed at a higher high but the zig declined to 159, therefore not a peak. The example Favors gives in his TA article is as follows: 5-11-90 Dow NH at 2801, nad +943 5-29-90 Dow NH at 2870, nad +673 6- 4-90 Dow NH at 2935, nad +628 giving the initial sell signal. Then a repeat sell at: 7-12-90 Dow NH at 2969, nad at +442 Two days trading days later on 7-16-90 Dow closed at 2999.75. Then a wee bit of a decline. Favors also adds "Finally, for the signal to be truly valid via this technique the DJIA should reach a new hourly high or low the same day as the new closing high or low on each of the three peaks at a top or two troughs for a bottom. By this we mean new hourly and closing highs for that swing, not necessarily new bull or bear market highs or lows." "this technique has been very accurate at catching short-term tops or bottoms and when combined with other tools can greatly increase the accuracy of your market timing."