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

To: shasta23 who wrote (17383)	5/21/1998 6:18:00 PM
From: Ocote	Read Replies (1) \| Respond to of 79444

Sorry, Stefan I assumed you were in the loop on the 13 day RSI model. Over time I have abbreviated more and more, but initially it was duscussed in great detail. This is the model that Doug first published with the October 1997 pullback, and it worked extremely well in predicting the correction and its end. It basically uses the 13 day RSI of the index in question, using trend lines to determine breakout from uptrend to downtrend. For example the high of the RSI 13 in the SP500 was 80 on 6/16/97. You can then draw a downtrend across highs of 10/7 and 12/5. That downtrend line is broken to the upside on 2/2/98. Interestingly, I didn't notice until now that that line forms support on 3/5 and 5/8. Sometimes this lines go wwwwwaaaaayyyyy out in terms of their effects, i.e. a support line becomes a resistance line or vice versa. The model that worked so straightforwardly in the October to February correction was less straightforward in the present one.(no clean breakout on volume). Therefore I have been supplementing it with advance decline line and whatever else I can get my hands on. You're certainly right that other indicators are less positive. I'd like to know what your interpretation is. My data is flawed by lack of volume info, and that's a serious flaw. If you are more interested in the RSI 13 model, download 10 years of Dow data and look at all the corrections for the last decade or so. Ocote