1. Start trend from a major low 2. Count Max Days at One-Price Level 3. Once detach from Max-Level (Mode), Count days until time expires. 4. Measure the price range while the market is at the mode and project up. 5. Wait for a new mode to build. 6. Wait for a range completely above the mode. 7. Trade the next upwave.
For now the time for the recent rally expired and it's time to watch and wait for a new mode to build here around the $240-$265 area to the tune of 15-20 days at one price. Look for CCI to reach -100 for low-risk entries.
Okay now I fully understand. This is almost like magic
InnovaThorr
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with you on that.
mazdaki
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Tim, Lets take a different look at the stock chart. Why don't you see this as a double top?
timwest
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mazdaki, Good question about a double-top. I am open to that possibility, but I would need to see the trend indicator show more signs of trouble. For now, it has been a solid advance that is grinding away at the short sellers who have a large position and not much in the way of bad news to try to press their bearish bets. So, for a double-top, I'd also want to see more weakness and volume expanding on down-days, etc. If I step the analysis up to the weekly or monthly level, maybe there will be some additional insights there. Lastly, I would also look for relative strength to start to break down for this to be a major top. Thanks for the question.