Question on B8 Signals

Hi Mike,

I just wanted to confirm that only a single B8 count can be included during a rally period.

E.g. I counted a B8 signal on $COMPQ Aug 6. Subsequently, I believe there was a marked high on Aug 21. On Sep 6, $COMPQ moved past the Aug 21 high. Nonetheless, I gather we do not count Aug 21 as a B8 b/c we already have counted a B8 signal on Aug 6.

Also, on B8, I assume we are only looking at exceeding the previous marked high on an intraday basis (not closing), but price must increase on the day to qualify as a signal.

Thanks,

Shawn

Shawn,

You are correct about the B8 signal on August 6. Then August 21 was a new marked high. The definition of a B8 buy signal requires [U]closing [/U]above the last marked high. A high becomes marked in MarketSmith if on an intraday basis the high is the highest high in a 9-day forward and backward looking basis (total of 19 bars including the day being tested). There are no limits to B8 signals in a rally period thus we had another one on September 6. That day was also a B7 Accumulation day buy signal. The exposure count is now maxed out at +7, power trend is on, distribution count is +2. The 8/2/2012 distribution day falls out of the count on Monday close because it will fall out of the 25-day look back window.