FYI: You know how skeptical I am of market maxims and rules of thumb and pattern recognition in general…
At best, these “signals” work sometimes and there are too many variables that are exogenous to the signal – so that a practitioner cannot know when it’s about to work and when it’s not. They can take a bow in hindsight on a signal foreseen but if things don’t play out, no one really remembers anyway – so it’s kind of like a free call option on pundithood.
Regards,
Ted
https://thereformedbroker.com/2018/12/16/did-dow-theory-just-trigger-an-important-sell-signal/
