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IMPORTANT POINTS TO REMEMBER IN FORECASTING- M! W$ O1 _: _- ?
% s( J& ?3 {% d* k! E9 @5 zTIME is the most important factor of all, and not until sufficient time has expired does any
1 k9 K( t1 p8 Q' W) Vbig move up or down, start. The Time factor will overbalance both Space and Volume. - g7 K; U; x. q3 [" g2 n- e
When Time is up, space movement will start and big volume will begin, either up or down. 6 ^/ I s1 `5 c `
At the end of any big movement – with monthly, weekly, or daily – Time, must be allowed
8 Y$ a2 d. C( P7 {' M3 Xfor accumulation or distribution.; Q Y( u/ z/ g) _
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Consider each individual stock and determine its trend from its position, according to distance
2 W& b3 F) T. t# H5 u3 |& jin time from bottom or top. Each stock works out its 1, 2, 3, 5, 7, 10, 15, 20, 30, 50 and 60-
( F7 f0 ^, N* ]9 Jyear cycles from its own base or bottoms and tops, regardless of the movements of other
/ l6 m4 D4 Q3 {- i/ m- nstocks, even those in the same group. Therefore, judge each stock individually and keep up
! m* d* k# O" w5 c! h! d2 M' t8 \weekly and monthly charts on them.7 V) B! p+ F8 }
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Never decide that the main trend has changed one way or the other without consulting the : j- ?9 K7 C) D" _+ h
angles from top or bottom and without considering the position of the market and cycle of
! n: e, w' d$ V8 e9 qeach individual stock.
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Always consider the annual forecast and whether the big time limit has run out or not before 6 Z6 J5 Y: O- E5 D3 y+ a& B3 f5 S
judging a reverse move. Do not fail to consider the indications on Time, both from main tops 3 `/ c- @. I: M% [, A( j9 n' P# g/ G
and bottoms, also Volume of Sales and position on Geometrical Angles.
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A daily chart gives the first short change, which may run for 7 to 10 days; the Weekly Chart
8 z) F+ Q/ K. p/ `7 h/ h: lgives the next important change in trend; and the Monthly the strongest. Remember, weekly
/ s K. G @4 Y' s( S+ J. Cmoves run 3 to 7 weeks, monthly moves 2 to 3 months or more, according to the yearly cycle,
5 E' |3 ?2 W) {0 z R5 N( ^before reversing.5 H+ k6 b0 E2 S2 q$ U
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Yearly bottoms and tops: it is important to know whether a stock is making higher or lower
6 o& ]1 y4 h2 I* t4 s" Ibottoms each year. For instance, if a stock has made a higher bottom each year for five years, 8 X/ n3 P$ f/ ^3 [! p- c) B
then makes a lower bottom than the previous year, it is a sign of reversal and may mark a long v/ L3 ~% I' D# u
down cycle. The same rule applies when stocks are making lower tops for a number of years 5 n* X5 S( _( X4 W+ s/ Q7 h' s, k
in a bear market.% V4 S' N; r2 z
7 [" x9 M, Y, [: Z( KWhen extreme advances or declines occur, the first time the market reverses over 1/4 to 1/2 of ! V4 c6 p* ?: y% I
the distance covered in the previous movement, you consider that the trend has changed, at ; m* H0 d' P$ F- B1 C P9 W
least temporarily.
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, }( {( W6 ?0 R, E: p5 j2 {It is important to watch space movements. When Time is running out one way or the other, + Z! X4 l2 |4 ^' s; @* r" l; W
space movements will show a reversal by breaking back over 1/4, 1/3 or 1/2 of the distance of
- G, z I8 r! ^" i( Bthe last move from extreme low to extreme high, which indicates that the main trend has ; @( A% I; R6 F" q
changed.' a0 R4 W1 d- e' O9 c# |
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Study all the instructions and rules that I have given you; read them over several times, as 7 ~6 p* z% |3 a1 c! I* [+ l* E( a
each time they will become clearer to you. Study the charts and work out the rules in actual
, _& O1 z: x W% lpractice as well as on past performance. In this way, you will make progress and will realize
3 n7 Z3 T' y! H& w) cand appreciate the value of my Method of Forecasting.6 _3 M$ H, Y# P7 l- M7 i9 \. z
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