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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (2011)	12/16/1998 1:11:00 AM
From: Jon K.	Read Replies (2) \| Respond to of 99985

LG says he expects the market to go up until the Dow hits the trend line (which is drawn as a line resting on the upper price fluctuations since the last top - ie a line tangent to the chart). Then he expects it to bounce back until it hits the 50 and 200 day moving averages at which point it might consolidate a bit. However, if it breaks above the existing trendline all bets are off. Often previous consolidation/resistance areas on the way up become congestion/support areas for the price on the way down. That's the bull flag stuff. A bull flag is a short down trend within a major advance. On charts that include daily highs and lows it looks like a sloping down rectangular "flag". Does this make sense to you? Yes, David it makes more sense now. Thank you. I've been reading some tutorials on TA, but applying those triangles and flags to real chart isn't that easy for me right now.