Open?

[Harry]

Mike,

Thank you for the informative reply!

If you have time, I also have a MEM question. On Friday you posted "Today with the close in the upper part of the range qualifies as a day-1 rally attempt, the earliest follow-through day is day 4 rally count or next Wednesday. Once in a blue moon we get day-3 follow-through days if all three days make big moves up."

Is "big moves up" a subjective call by Bill O'Neil or is it defined somewhere? I'm assuming both Monday & Tuesday moves were not "big" enough, correct?

I cannot express my gratitude for you taking the time to help educate myself and others.

Harry

[Mike]

Mike,

Thank you for the informative reply!

If you have time, I also have a MEM question. On Friday you posted "Today with the close in the upper part of the range qualifies as a day-1 rally attempt, the earliest follow-through day is day 4 rally count or next Wednesday. Once in a blue moon we get day-3 follow-through days if all three days make big moves up."

Is "big moves up" a subjective call by Bill O'Neil or is it defined somewhere? I'm assuming both Monday & Tuesday moves were not "big" enough, correct?

I cannot express my gratitude for you taking the time to help educate myself and others.

Harry

Harry
I don't have a definition of 3-day FTD. They are too rare to do a lot of back testing. Something like three days with each day up 1.25% or so closing near the top of the range with at least one of the days in high volume.

I am away from my tools traveling in New Mexico not able to look at charts right now to make any judgement calls on the current market.

[brrim]

Harry; In Trade Like an O'Neil Disciple, in the chapter Dr. K's Market Direction Model, pg 231-232.
"In very rare instances, a follow-through day can occur on the third day of the rally attempt but all 3 days must be on increasing volume such as January 15-17, 1991, on the NASDAQ Composite, or the prior 3 weeks must be relatively tight such as the weeks leading up to the follow-through day on January 5, 1987."

On 4/5 the NASDAQ close was at the top of the range, but 4/8 was on decreased volume. Yesterday volume increased, but was less than volume on 4/5, so the last 3 days would not fulfill this definition.
Today is another story.

Best regards,
Robert

[Harry]

Thank you Robert!

Agree, today looks to be setting up as a FTD.