OracleTrading

[downsideup]

Look at a six month chart of PCX and a one month chart of CCOW.

I'm wondering if there might be a way to use pattern recognition across a time independent compression series to find that pattern you see in CCOW in others to a statistically relevant measure.

I'm not saying CCOW is worth looking at... I'm saying the CCOW chart has to be a fairly good look at what "capitulation" looks like (and maybe it is justified in CCOW, don't know)... and that you see something roughly similar in pattern on a six month chart of PCX.

I don't have a problem with understanding the "dynamic" when a stock or the market falls off a cliff on bad news... it goes oversold, bounces... cha-ching... and then who cares. I don't know that I've heard of anyone using a NON-dynamic time independent series method for measuring the depth, or time dependence, or percentage in time, of the degree of "capitulation" in the market, but that would probably be a useful thing to have as an awareness.