Kind Words from Terry Laundry, Founder of T Theory

"Parker has sent me what I consider to be the most important refinements to T Theory I have ever received from anyone in an e-mail . . . which he calls Tweaking the 13th Advance Decline T." September 29, 2010

"Parker has sent me a very interesting concept which is the NY Advance Decline line divided by the put-call ratio . . . What he's done is introduce the idea of sentiment." September 15, 2010

"Parker discovered the Money Flow Ts . . . This is something like the Holy Grail in T Theory. You are always looking for something that will help you refine the peak date." October 17, 201

"Money Flow Ts are probably the greatest new thing I have seen in 20 years in terms of time symmetries." December 5, 2010.

Tuesday, October 19, 2010

$$ Double Ts


This video examines a peculiar double-time symmetry found at the end of major moves.
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9 comments:

  1. Luv them WavesOctober 19, 2010 at 1:23 PM

    Wow!

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  2. AnonymousOctober 19, 2010 at 1:31 PM

    Parker:

    Great post!!! I really appreciate your work.

    How do you relate the double T concept to the end of T13?? Many Thanks.

    John C.

    ReplyDelete
  3. PositionSizingOctober 19, 2010 at 1:40 PM

    John

    To the extent April 26 was the price high of T13, it already worked.

    More recently, if you'll recall back in September I was expecting a high in late September, and a low on October 18-20. Except price kept powering up.

    Now it appears as if October 18 was "a" high. Don't know if it was "the" high yet. But it's the same principle at work - low to low = low to high at the end of a major up move.

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  4. AnonymousOctober 19, 2010 at 3:58 PM

    Do you also look at any pattern analysis...for example when a move ends (see Jan. and April of 2010), it typically has 2-3 bad short term selloffs before the final top. See Jan. 11 to Jan 19. and Apr. 15 to Apr. 23. Today looks very similar to Jan. 12 and April 16. If tomorrow is up, then I think we are within a week or so of a true top here. If we go down, then something else is at play. Just something to watch for tomorrow.

    ReplyDelete
  5. AnonymousOctober 19, 2010 at 6:57 PM

    Parker, I also follow Terry's work and have been for years. My analysis shows that many times PRICE T's top out before the projected top date. Using your Money Flow T work for tops in reverse shows a LOW around Nov 12th. Your comment would be greatly appreciated.

    http://www.screencast.com/t/gPIbFGvfLIz

    ReplyDelete
  6. PositionSizingOctober 19, 2010 at 7:38 PM

    Thanks for your question and your chart. I'm not sure what you mean about "Money Flow T in reverse." Here's how I think of that concept, where the Money Flow makes a bottom in the middle of a strong down move:

    http://schrts.com/aqWgKW

    If you go back to my refinement of where to start the long term AD Ts, my version of T12 using the final low as a center post gave a mid-December 2007 target. That was nowhere near the price top of T12, but it was extremely close to the end of T12 (i.e. the downtrend started in earnest shortly thereafter).

    Likewise, using my start date on T13 and the final low in early March 2009 produces the November 12 date. I think of that as an "end" date, not a top date per se.

    Hope this helps.

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  7. AnonymousOctober 19, 2010 at 8:24 PM

    in reverse meaning your money flow T's that I have seen only show tops not bottoms. Using the same method you get a Nov. 12th bottom. Thanks for the repy

    ReplyDelete
  8. AnonymousOctober 20, 2010 at 11:05 AM

    Parker, I read about the Double T on Terry's update today. I found your blog on his site and I appreciate getting it. I did the trading day count on the current double T and I got an end date of today, Oct. 20. Does that sound right?
    Also, where can I read about Gann's Sq. of Nine?

    Thanks, Alvis

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  9. PositionSizingOctober 20, 2010 at 11:43 AM

    Alvis

    You can read more about Gann in Chapter 9 of Connie Brown's book Technical Analysis for the Trading Professional.

    The Double Ts are very specific. You need to be in a trend of some length (generally a year or more). The left side of the Double T will be a huge spike in my AD Oscillator in the opposite direction of the trend. By huge, I mean biggest spike in that direction since the trend started.

    Currently, the S&P is not even above the April highs. We aren't in a long trend. Instead, we just broke out of a trading range about a month ago. So by strict interpretation, the Double T based on oscillator spikes does not apply here.

    However, cycle inversion can happen outside the strict Double T rules. And as I have noted elsewhere, one of the scenarios I am watching is that ~October 20 is the mid point of a divergence topping pattern on my AD Oscillator that started on October 13 and is expected to end on or about ~October 27.

    ReplyDelete

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