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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (7736)	11/3/1998 1:04:00 PM
From: Patrick Slevin	Read Replies (2) \| Respond to of 44573

Unlike a lot of people I cannot depict a graphical design somewhere (at least not without my son's help....and it would take to long to tell him what I wish to depict). Hypothetical situation: Market has a low at Time Zero. Then rises x points by day T+100. Market drops 2x points by day T+300. Then recovers. So your handle starts at Zero, the upper Tine is at T+100 and lower Tine at T+300 The market dropped slowly from T+100 to T+250, only dropping 0.5x points. The balance, 1.5x, dropped in the remaining 50 days. So, bisecting the secant would give you exactly half the time as well as exactly half the point drop? No matter how the drop occurred; whether it was gradual, sudden or a zig-zag drop like the one I tried to explain above? I'd check it myself but I'll take your word for it; I don't wish to cut and paste a smear of graph paper. BTW, went long with a tight stop at 13.20