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

To: donald sew who wrote (4767)	1/27/1999 8:32:00 PM
From: HairBall	Read Replies (2) \| Respond to of 99985

donald: Well IMHO, I respectfully disagree with the formation on the actual chart being a descending triangle. I did chart the formation on the Actual 60-Minute Interval Semi-Log Chart initially as described in my earlier post. But, today I went back and charted it on a linear chart to see where the rising wedge played into today's high from a linear view. I believe they are both falling wedges. (Dow Industrials) Charting formations on the Semi-Log scale has worked for me for over a decade. And I have developed all my signals for the Dow Indices using Theoretical Data over that decade plus as well. Semi-Log puts price climbs and falls more into perspective and I find the formation trend lines more accurate on a percentage basis over time. I guess this old dog will stay with the old tricks...<g> In addition, trend lines drawn using the Dow Theoretical Data often pattern up different than Dow Actual Data. However, most often a similar pattern with the same expected result is visible. I try to interpret what I see on the Theoretical charts to the Actual charts because that is what we (day traders) view during the trading day. Note: I have sent updated charts to Monty for the Thread's viewing pleasure. Please realize that each time the charts are updated, various references made by my previous post may well be invalid. (Monty may not have updated the above referenced charts, as of this posting. You may have to revisit them later tonight or in the am.) The charts can be seen at: cp-tel.net Extended (longer-term) Rising Wedge formations often are not controlling formations, but influencing formations. Once the expected break takes place the correction moves the price action to the right and clear of the formation. Note the price action after the previous rising wedge denoted in dark green trend lines. It proceeded and influenced the pullback. Dark Green Trend Lines: Previous Rising Wedge (bearish) off Oct 8 low. Dark Yellow Trend Lines: Current Rising Wedge (bearish) off Oct 8 low. Dark Purple Trend Lines: Current Andrew's Pitchfork Tines. Dark Red Trend Lines: Current Falling Wedge (bullish). White Trend Lines: Previous Bearish Flag. Donald now having said all that, per our conversations, you know that I think the top may well be in for the Dow IND/DJI at least medium term and I expect the NAZ to snap back soon. In addition to our earlier exchange regarding Merrill Lynch and Goldman Sachs, CNN Moneyline tonight quoted SEC Chairman Author Levit warning online traders to start considering fundamentals. Maybe the Big Boys are signaling a great big head slap is coming for “new era” manic investors…<g> (All Disclaimers Apply) BWDIK Regards, LG