The 4 Week Rule is really no different from the rules surrounding the single line moving average. It can be used to identify breakout patterns and trend reversals, and it can be used as filters. Critics point out that the Weekly Rule has the same kind of problem that the Parabolic SAR system has when it comes to the inability for the system to be timely on market tops and bottoms. That being a con, a pro to the system is that it allows the investor to get involved in major trends as they are unfolding, with greater conviction that you are on the right side of the market.
Pennies not a zero sum game as much as some zero game.
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