Deva, using SPY and cma's of 73/37/19/9 and dpo(9), the cma's form the ID of a significant low in August, with each progressively shorter cma underneath the next longer one. The low of cma9 was approx 242.80 and the dpo9 showed positive excursions usually of 1.0 or less although occasionally 1.5-2.0. The convergent point where all but cma9 cross is approx 250.80 for a distance of 8.0 pts, and a projection to the high (for the cma9) of 258.80. To obtain the actual estimated high, one must add a dpo value to 258.80, and a typical value of 1.0 gives est high of 259.80. Mkt craziness extending dpo to 2.0 would extend the est high to 260.80.
Note that in projecting a low point one would use a typical negative excursion on the dpo and subtract that from the projected low of the cma9.
For other markets with defined cycles different than these, use the set of cma's corresponding to the cycle and proceed in the same manner.
Note also that the choice of cma9 is somewhat arbitrary, but matches a typical short term cycle that is well known.
If there are further questions, I will be happy to attempt to answer them.
Oddlot
Stay on the right side of the cycle!
