Hybrid Approach With Middle Section Chains

By: Ed Carlson | Tue, Sep 10, 2013
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In my previous commentary I introduced a hybrid approach to the work of George Lindsay that I have been developing to time short term highs and lows in the Dow Jones Industrial index. The approach called for a temporary low on 8/28/13. As of today, the intra-day low of the decline from 8/2/13, on 8/28/13, has not been broken.

The date listed for a high to the rally from 8/28/13 was 9/11/13. Centering a Middle Section forecast on the basic cycle low of 10/4/11 produces a forecast for a high on 9/11/13.

10/26/09 - the first day the Dow breaks down from a flattened top - counts 708 days to 10/4/11. Counting 708 days forward (from 10/4/11) forecasts a turn date on 9/11/13. Because 10/4/11 is a low, the forecast is for a high.

Larger Image - Figure 1

But the hybrid approach involved more than just a Middle Section count. It also used Lindsay's concept of Middle Section Chains to confirm the forecast date. A chain of roughly equal intervals (equidistances) of 199 calendar days can be found originating at point E of a Middle Section in early 2012 and extending between obvious (and some not quite so obvious) inflection points in the Dow.

The chain terminates on 9/12/13 - one day later than the Middle Section forecast on the previous page.

In a fashion typical of other chain examples the interval originating or terminating at a Middle Section is slightly off from the other intervals as if the Middle Section is a time of "catching up" for the interval.

This particular chain of intervals has been tracked back to 2006.

Larger Image - Figure 2


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Ed Carlson

Author: Ed Carlson

Ed Carlson
Seattle Technical Advisors.com

Ed Carlson

Ed Carlson, author of George Lindsay and the Art of Technical Analysis, and his new book, George Lindsay's An Aid to Timing is an independent trader, consultant, and Chartered Market Technician (CMT) based in Seattle. Carlson manages the website Seattle Technical Advisors.com, where he publishes daily and weekly commentary. He spent twenty years as a stockbroker and holds an M.B.A. from Wichita State University.

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