Thursday, September 30, 2010

Number of $SPX 3 Line Break Bricks


Steve Nison's book entitled "Beyond Candlesticks" suggests that when 8-10 lines (bricks) are laid down in 3 LB, the market is either overbought or oversold. The $SPX now stands at 9 bricks. The $SPX has had instances in the past two years where it only reversed or paused after 13, 13, 13 or 20 bricks were laid down, respectively (so the $SPX can run more). The 3LB $SPX Aroon Oscillator is positive which suggests an uptrend. The further the value is away from the zero line, the stronger the trend. The oscillator may lag by half a month for 3LB.

No comments:

Post a Comment