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发表于 2008-4-17 08:38
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Case Study Course Example of Expanding Pivot Formation, of 0-4 line as a Center Line, and of 1-4 line as a Center Line (CL); also of the Moving Average lines as CL.
These are only three of the CLs that can be used to measure Action and Reaction (A) and (R) from. Other CLs are Median Lines, (ML); Multi-pivot lines, (MPL); Peak to Low, (P-L); (Note that this P-L is usually a 0-5 line). Also, such is the marvelous order of Price Fluctuations that you may use lines between any two Ps as CLs. Can you now see how this application of Newton抯 Law about Action and Reaction applied to prices, was the principle to which Roger Babson attributed his $50 million ?
First you should notice how Ps 1,3,5 are progressively higher while Ps 2&4 are points in a down sloping line giving you the E.P. Formation. You recall the E.P. Rule states that prices will drop at least that distance below the 0-4 line that they are previously above that line. Now if you had sold short near P5, you might put an order in to cover at 2.78 on June 17. But when prices gap and drop way below the R1 line on that day, you know from this that even though prices nearly always ally back toward that R line, they are seen going much lower. So you take your position accordingly, following the trend down until R2. Again drops below the price at which R2 intersects, signals another 100% drop as a high probability, to R3. Here you find the same signal. Remember that this continued drop to equidistant R1, R2, R3 is peculiar to the E.P. formation. Here only is the probability high that you can safely ride a long trend down by observing this phenomena which is meaningless to other investors who have not taken the Course. You may now start looking for the inverted E.P. on other charts as well as for this E.P. above.
Please note how you can use the 30 day M.A. line together with the 10 day line to check how far probable declines will end. Here just consider the 30 day M.A. which on 4/24 the day of P1 closed about 60 points above the M.A. on that day. Similarly on the days of P4 and P5, about 60 points difference. Therefore you know there is a high probability that the drops on June 17 and July 6th, will be about the same distance of 60 points below the M.A. Line on that date. You get more accuracy in correspondence by measurement to the close usually than by measuring to the extreme of the range, for those days.
A.H. Andrews, Director ?1971 |
[ 本帖最后由 hefeiddd 于 2008-4-19 08:35 编辑 ] |
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