Skip to Main Content
Kase on Technical Analysis Workbook, + Video Course
book

Kase on Technical Analysis Workbook, + Video Course

by Cynthia A. Kase
March 2015
Beginner content levelBeginner
224 pages
2h 37m
English
Wiley
Content preview from Kase on Technical Analysis Workbook, + Video Course

CHAPTER 10 Forecasting Techniques: Waves and Projections

ANSWER 10.1   MMM Monthly with Swing 2 Labels

  1. See table below. I ignored the 90.0 and 95.46 swing highs because the first swing high, 98.19, is higher than these levels. Starting from X, one would only connect to highs that are higher than the initial Y, 98.19.

    X Y Z
    1 40.87   98.19   68.63
    2 40.87 140.43 123.61
    3 40.87 146.43 138.43
  2. To determine the impulse projection, Target = Z + a(Y – X), a = (Target – Z)/ (Y – x). a = (146.43 – 68.63)/(98.19 – 40.87) = 1.35. This is close to the Intermediate target (1.382) of 147.85, and within 0.96 percent of the actual 146.43 high.
  3. To determine the corrective projection, Projection = Z + a(Y – Z). a = (Projection – Z)/(Y – Z). a = (147.85 – 68.63)/(98.19 – 68.63) = 2.63. Phi squared, 1.618 squared = 2.618. Thus the 146.43 high fulfills the P2 projection, which is actually 146.00, within 0.29 percent.
  4. See table below.

    X Y Z Target Price
    1   40.87   98.19   68.63 L 161.38
    2   68.63   95.46   86.74 X 160.90
    3   81.99 140.43 123.61 S 159.73
    4 123.61 146.43 138.43 E 161.25
    5 123.61 146.43 138.43 P2 159.37
  5. The next major resistance point might be around 160.5, the average of the targets in the Price column above.
  6. See table below.

    X Y Z
    1   40.87 146.43 138.43
    2   68.63 146.43 138.43
    3   81.99 146.43 138.43
    4   86.74 146.43 138.43
    5 123.61 146.43 138.43
  7. See table below.

  8. A price of around 124.7 is the 21 percent retracement ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Trade with the Odds: How To Construct Market-Beating Trading Systems, + Website

Trade with the Odds: How To Construct Market-Beating Trading Systems, + Website

Anthony Trongone PHD, CFP, CTA

Publisher Resources

ISBN: 9781118818978Purchase book