More Price Pulses

Last Thursday I began to explore my interpretation of Price pulses based on the excellent book by Tony Plummer entitled “Forecasting Financial Markets – Technical Analysis and the Dynamics of Price”. In that post I looked at what I call the “short” time scale and began to build trading rules. As of last Thursday we had just seen an x-pulse bottom on January 23 with the price pulse pattern warning us to wait for a re-test of that low.

Price Pulses can be found on different time scales. What I call the “Intermediate” scale is just above the “short” scale and is shown in today’s chart. The first item of note is the symmetry in the moves from October 11 to November 26 and December 11 to January 23. Each began at Y-pulse highs and then had an orderly downtrend of five pulses; each pulse in succession showing a lower high and then a lower low.

Now we find the market at perhaps another Y-pulse high. If this is the case it will be of great interest to see whether the re-test of last Wednesday’s low can hold. Even if it doesn’t, the key will be future developments against the C-Y trendline (shown on the chart).

And so both the short and intermediate price pulse charts are pointing to the next event to watch for: the retest of the January 23 low.