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原文:
IMPORTANT POINTS TO REMEMBER IN FORECASTING
TIME is the most important factor of all, and not until sufficient time has expired does any
big move up or down, start. The Time factor will overbalance both Space and Volume.
When Time is up, space movement will start and big volume will begin, either up or down.
At the end of any big movement – with monthly, weekly, or daily – Time, must be allowed
for accumulation or distribution.
Consider each individual stock and determine its trend from its position, according to distance
in time from bottom or top. Each stock works out its 1, 2, 3, 5, 7, 10, 15, 20, 30, 50 and 60-
year cycles from its own base or bottoms and tops, regardless of the movements of other
stocks, even those in the same group. Therefore, judge each stock individually and keep up
weekly and monthly charts on them.
Never decide that the main trend has changed one way or the other without consulting the
angles from top or bottom and without considering the position of the market and cycle of
each individual stock.
Always consider the annual forecast and whether the big time limit has run out or not before
judging a reverse move. Do not fail to consider the indications on Time, both from main tops
and bottoms, also Volume of Sales and position on Geometrical Angles.
A daily chart gives the first short change, which may run for 7 to 10 days; the Weekly Chart
gives the next important change in trend; and the Monthly the strongest. Remember, weekly
moves run 3 to 7 weeks, monthly moves 2 to 3 months or more, according to the yearly cycle,
before reversing.
Yearly bottoms and tops: it is important to know whether a stock is making higher or lower
bottoms each year. For instance, if a stock has made a higher bottom each year for five years,
then makes a lower bottom than the previous year, it is a sign of reversal and may mark a long
down cycle. The same rule applies when stocks are making lower tops for a number of years
in a bear market.
When extreme advances or declines occur, the first time the market reverses over 1/4 to 1/2 of
the distance covered in the previous movement, you consider that the trend has changed, at
least temporarily.
It is important to watch space movements. When Time is running out one way or the other,
space movements will show a reversal by breaking back over 1/4, 1/3 or 1/2 of the distance of
the last move from extreme low to extreme high, which indicates that the main trend has
changed.
Study all the instructions and rules that I have given you; read them over several times, as
each time they will become clearer to you. Study the charts and work out the rules in actual
practice as well as on past performance. In this way, you will make progress and will realize
and appreciate the value of my Method of Forecasting.
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