McLaren has a few little ideas that are quite useful.There is...

McLaren has a few little ideas that are quite useful.

There is his idea of first degree counter trends of 1 - 4 days and secondary corrections of 7 - 12 days.

Then there is the principle of resumption of the trend taking no more than the correction. So if a 3 day correction hasn't make a breakout by 4 days in the original direction then something is wrong.

Another thought is when the days are double the previous move witout a breakout then that is a time to watch for a turn.

Working off the XAO, which he does, we had a sharp 7 days down and now 15 days up.

So we have had more than the 7 -12 days of a secondary correction which is positive but we are now about double the move down and not at new highs.

He would consider this a struggling market.

Of course these are just "normal" behaviour and don't mean it has to happen.