My colleague Ed Carlson, CMT, has a hot new book on the work of George Lindsay. Y'all might know is most famous finding - the three peaks and a domed house formation.
Usually, this stuff never works in real time.The markets change, new vehicles are introduced and they monkey around with trading rules to make cherished indicators - such as anything relying on tick data - like they are flinging poo at chartists.
This time, however, Lindsay, and Carlson albeit with a little journalistic license on my part, nailed it. The TP & a DH pattern nailed the summer top and even described what we all knew as the giant head-and-shoulders pattern that dominated the market all year until the July-August bonk.
I wrote this up for MarketWatch in June before the final peak here:
Market’s chart pattern shows trouble in the house
Next week, in their Trading Strategies section, I will have a follow-up. The sneak preview is that it remains bearish.
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