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Sunday, February 21, 2010

Sunday Observations

I was playing around with the MB-Ruler on the charts and found this, the angle of the heavy dashed blue lines are the same measured from 90 degrees vertical. The angle coming off the top was then resistance, and the same angle coming up from the lows, is now support. I have been finding this relationship across a broad spectrum of charts where the angles from sell-offs, are the same on the rallies.

Here the same concept is applied to the SPX, where I measured the angle of the sell-off from the high back in late '07, then transposed it to the rally starting early last year, amazing that where the price broke the angled line, is also the point where we had the highest high, and where the SPX started the sell-off at 1150. Fan number 3 is set at the same angle from 1150 as the other two fans where from 90 degrees vertical. What I am hoping to see is that the price action of correction in this sell-off does not break above the last bearish fan, and to see if it provides resistance on the way down.


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  2. Hi Mike. Great Renko charts in the last post. Regarding your current post - are these charts log or linear scale, and have you noticed whether it makes a difference?

  3. Good find Mike. Now for the stupid question of the day, what is a MB ruler?

  4. Kim, you can find a link to download the software under "Check these out!!!" on the right side of the blog, it is like a compass, that laysover your charts so you can measure angles.

  5. :-) Sorry Mike. I never thought of checking there. Hey, it's a blond thing. What can I say. LOL