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By
doing this, you will know when time periods balance or come out about
the same as a previous move. This is balancing of time.
By knowing these dates and prices, it will help you to determine the
duration of the next move. The longer the period of time that elapses
before a previous high level is crossed or a previous low level is
broken, the greater the advance or decline which follows.
PRICE
SWINGS OVERBALANCED
When
prices have advanced for a considerable period of time and have made
several reverse swings, the first time a reverse swing or reaction
exceeds the previous downswing, it is an indication that the trend
is changing. But never consider that the trend has definitely changed
until the time period has overbalanced.
Example: If prices have been advancing for a considerable time and
there have been several reactions running 5 to 7 days, then a downswing
starts and runs more than 7 days, it is an indication that the trend
is changing, at least temporarily. If the price reaction had also
overbalanced, then it would be a definite indication
of a change in trend, either minor or major.
In
a declining market, keep account of all the rallies and how many cents
the market has rallied from time to time and also record the time
period of each rally; then when the low is reached and the advance
exceeds the previous rallies in a bear Bear Market, it is an indication
that both price and time are overbalanced
and the trend is changing.
Remember
that all rules work best when markets are very active and near extreme
high or extreme low levels. Changes in trend which occur between extreme
high or low do not mean as much as a reversal when prices are near
extreme high or low and are very active.
Happy
trading,
Solomon
Thallon
HotTrader, Australia
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