• 658 days Will The ECB Continue To Hike Rates?
  • 658 days Forbes: Aramco Remains Largest Company In The Middle East
  • 660 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,059 days Could Crypto Overtake Traditional Investment?
  • 1,064 days Americans Still Quitting Jobs At Record Pace
  • 1,066 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,069 days Is The Dollar Too Strong?
  • 1,069 days Big Tech Disappoints Investors on Earnings Calls
  • 1,070 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,072 days China Is Quietly Trying To Distance Itself From Russia
  • 1,072 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,076 days Crypto Investors Won Big In 2021
  • 1,076 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,077 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,080 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,080 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,083 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,084 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,084 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,086 days Are NFTs About To Take Over Gaming?
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

  1. Home
  2. Markets
  3. Other

Lindsay's Preliminary Low Sequence

On August 23, 1972, the late technician George Lindsay made a presentation to the Society for the Investigation of Recurring Events (S.I.R.E.) in New York City. In that presentation he explained his preliminary low sequence.

Rather than the terms bull and bear markets (which can be of almost any duration) Lindsay created a concept called basic advances and basic declines. These basic movements are timed using his standard time spans which he found that, since 1798, all bull and bear markets fit into. When a basic decline terminates prior to the final low of a bear market that higher low was called a preliminary low (point 1).

Lindsay' principle of continuity directs us to count the next basic advance from that low rather than the ultimate low. Lindsay found anytime a basic advance is counted from a preliminary low the market action resembles Figure 1 below. The most important and interesting idiosyncrasy of this period is that the period just before and after point 5 has always been marked by slow and halting movement (see George Lindsay and the Art of Technical Analysis, FT Press, 2011).

Preliminary Basic Low

With the basic decline from the 2007 bull market top having ended in November 2008 the next basic advance is counted from that preliminary low and the time since then resembles Lindsay's template above. The pattern warns of a bull market top in the near future (to be continued next week).


Larger Image

 


Take a "sneak-peek" (trial subscription) at Seattle Technical Advisors.com

 

Back to homepage

Leave a comment

Leave a comment