Zooming WAY out on the DJI
Trivia time...in what year was the DJIA first published?
Answer: 1896
That gives us 125 years worth of technical charting data!
My favorite charting tool is Andrews' median line. Taking an 'A' pivot from 1896 low, a 'B' pivot from the 1929 blow off top, and a 'C' pivot from the 1932 low we can draw a nice median line that has captured price over the past 89 years.
Admittedly though, it's a large area within the median line so maybe this is not that surprising.
What does catch my eye, though, is the 75% line within it represented by the dashed line in the chart. This is 75% of the distance between the center line and the outer parallel lines. Price bounced off this line on the bottom in both 1942 and 1982. Now, keeping in mind Newton's 3rd law of motion, we saw a bounce off the 75% line in 2000 on the opposite side of the center line. As Tim Morge likes to put it "as above, so below", or in this case "as below, so above."
Looking at the chart now, we're at that top 75% line for the second time...
Answer: 1896
That gives us 125 years worth of technical charting data!
My favorite charting tool is Andrews' median line. Taking an 'A' pivot from 1896 low, a 'B' pivot from the 1929 blow off top, and a 'C' pivot from the 1932 low we can draw a nice median line that has captured price over the past 89 years.
Admittedly though, it's a large area within the median line so maybe this is not that surprising.
What does catch my eye, though, is the 75% line within it represented by the dashed line in the chart. This is 75% of the distance between the center line and the outer parallel lines. Price bounced off this line on the bottom in both 1942 and 1982. Now, keeping in mind Newton's 3rd law of motion, we saw a bounce off the 75% line in 2000 on the opposite side of the center line. As Tim Morge likes to put it "as above, so below", or in this case "as below, so above."
Looking at the chart now, we're at that top 75% line for the second time...
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