Middle Sections

By: Ed Carlson | Tue, Apr 15, 2014
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An advancing Middle Section from early 2009 (top) pointed to two separate highs last week. The definition of a Middle Section is a period of time in which the Dow's rate of advance slows relative to what comes both before and after it. The two measuring points are points E and C. Point E is always the second-to-last rally in a Middle Section. Point C is the day the Dow drops down from a minor topping formation and begins the decline into the low of the Middle Section at point D. In this case, points C and D are identical.

Counts are taken from the measuring points to the low of the basic cycle (10/4/11) and the forecasted high is an equidistance after that low. In Lindsay's work lows always count to highs.

Point E on 4/2/09 counts 915 days to 10/4/11. This produced a forecast for a high on Monday, 4/7/14. The actual high fell on the previous Friday, 4/4/14.

Counting from point C on 3/30/09 to 10/4/11 is 918 days and was spot-on in forecasting last Wednesday's high - 918 days beyond 10/4/11.

Chart 1
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Chart 2
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Ed Carlson

Author: Ed Carlson

Ed Carlson
Seattle Technical Advisors.com

Ed Carlson

Ed Carlson, author of George Lindsay and the Art of Technical Analysis, and his new book, George Lindsay's An Aid to Timing is an independent trader, consultant, and Chartered Market Technician (CMT) based in Seattle. Carlson manages the website Seattle Technical Advisors.com, where he publishes daily and weekly commentary. He spent twenty years as a stockbroker and holds an M.B.A. from Wichita State University.

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