Friday, September 13, 2013

A Pullback After At Least 5 Up Days

Thursday’s moderately lower close triggered the following study that examines pullbacks after multi-day runs higher.


Initially there appears to be a moderate inclination for a move higher. Once you get out 9-10 days the upside edge appears solid. The idea behind this study is that strong moves higher tend to weaken before they roll over. The five days up suggest the move is strong. Since they rarely turn on a dime, this 1st dip is not likely the end of the up move.

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