In the book Beyond Candlesticks by Nison, he identifies 8 or 10 record sessions as being an extended market in Japanese lore. Here we also have a case of a prime number that would negate any daily cycle system. He also discusses the use of 3 line break charts as a trend following system. This cycle this past year surely has been the revenge of the trend followers. Even the micro level has been very trendy intraday in an almost eerie way. I keep wondering what mechanisms are at work behind this big change in the way the markets are operating now. IF one had followed a trend system over the past couple years, it might have been successful. As he says, you really don't know and are blindly trailing a stop.





Speak your mind

2 Comments so far

  1. Andrew Safa on March 16, 2010 2:19 am

    Do you know where I would be able to find intraday price intervals, or an intraday chart for SPX in dates ranging from the beginning of '08 to now?

  2. Craig Bowles on March 17, 2010 6:13 am

    The tiny daily ranges are odd also. We saw this in 2004 and 2005 but hard to find otherwise. Maybe it’s the result of manipulation that JPM and GS seem to be doing for the govt. $2 billion here, $4 billion there, and even $9 billion in a minute can turn a market as they’ve shown. It didn’t help 2008 though.


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