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THE
BULL MARKET
BHP
WEEKLY - 27 AUG, 1999
Firstly
there's a rally once the final bottom has been made. The market will
then fall back into the range of the rally, signifying a retracement.
Secondly
the new rally starts, the second rally of the campaign, and moves
the price into higher territory, above the high of the first rally,
then a retracement.
Thirdly
again the new rally starts, the third rally, and moves the price into
higher territory, above the high of the second rally, then a retracement.
The end of this third rally can sometimes spell the end of the bull
market move altogether, however, you must wait for the market to confirm
a change in trend.
Fourthly
the fourth rally is the most important to watch. Often once the fourth
section has completed the rally the end of the bull market has occurred.
Wait for a change in trend to confirm that the bear market has begun.
If BHP
were to retrace on the weekly chart as it did on the monthly chart
then we will see BHP @ around $14.85.
The
Best Way to Trade: by WD GANN.
"The
most money is made by swing trading, or in the long
pulls, that is following a definite trend as long as the trend is
up or down, but you must learn by rules to wait until the market gets
out of a rut or a trading range. Wait for definite indications that
it is going higher or lower, before you take a position for a long
pull trade. Always figure that you may be wrong and that the market
could reverse. Therefore, follow your profits up with a stop loss
order, or get out when you get a definite indication that the market
has reached a turning point and that the trend is changing."
Happy
trading,
Solomon
Thallon
HotTrader, Australia
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