re: look for shorts between 10920-10950
Well ellipses are interesting.
A market always has a set rate of growth, for example from 1966 to 1982 contained 891 "units of energy". This was the base of the sqaure and thus the peak of the market would have been 2.236 times this amount (sqaure root of 5) as you are going across 2 sqaures.
The procedure is to find where time would cause the bull market to end. if you know time you can calculate price in 2 seconds.
Draw an ellipse from the start to the end and the market will never ever be capable of moving outside of the ellipse provided you have it drawn correctly.
So all the ellipse on the Dow is showing is where a period of growth started and will end, the ellipse shows the boundries which the market will never be able to move out of until the next gowth/decay cycle takes hold.
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