Quote Originally Posted by Pascal View Post
Mike,


In your slide 21, you state the bar count rules.
Where do you start that bar count?

Can you provide a few typical rules of where to start?
For example," since the high before the previous pull-back started" or "max past 20 days."

The bar count summation will be different depending on the starting point.

Also, are recent patterns more important than past patterns? For example, if you count 20 days, are the last 5 days more important than the previous 15 days?


Pascal
Pascal, The bar count starts at the beginning of a base formation. The beginning of a base is the first down week after a closing high and counts up to but not including the breakout week which is possibly the breakout above a handle formation or a move to a new high in case of no handle. Minimum length of a base is usually 7 weeks however flat bases can be 5. Cup formations can be as much as 65 weeks.

The whole process is to help gauge whether institutions are accumulating or distributing. How the price closes at the end of the week helps tell what they are doing. As such more recent bars on the right side of the base are more important than the left. The method I described makes no such discrimination however it is a subtly that I might bring into a close call.