Seattle Technical Advisors

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Glossary
 
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This glossary is not meant to be a universal glossary for the complete terminology of technical analysis. There are many fine, on-line, resources available for that (see right). This glossary is devoted to terms the reader is likely to encounter at this website.


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107 day interval An interval of 107 calendar days used to forecast the intraday high of an advancing market. The key to using the interval is correctly determining its origin.

 

Agitation The starting point of a series of time intervals. An agitation may be an episode of violence, eruptions of an emotional nature (religious, economic, or political) or a creative concentration (books, paintings, plays, music, etc).

 

Ascending Base A base which forms after the Separating Decline in a Three Peaks/Domed House pattern. This base is characterized by a series of higher highs and higher lows.

 

Ascending Middle Section  The period in a bull market when the advance slows (relative to what preceded and followed this time period) typically for twenty weeks or more. The formation is used to target tops and bottoms. When the rallies in the middle section exceed the top of the previous advance, it is referred to as an Ascending Middle Section and contains at least three rallies.


Bandwidth Indicator, or  BWI, is one part of the Carlson Confirmation Model. BWI measures the distance between Bollinger Bands overlaid on 14-day RSI. The model hypothesizes that volatility expands when markets are following the 'true trend'. An expansion of volatility is manifested in a widening of the Bollinger Bands. When the bands expand, BWI rises. When the bands contract, BWI declines. BWI advances when price is following its true trend, up or down. More on BWI can be found in the SFO Magazine article from November 2009
http://www.seattletechnicaladvisors.com/aboutus/publishedarticles.html

 

Base The base-building phase of a Three Peaks/Domed House pattern prior to the First Floor Wall.

 

Basic Advances  Different categories of market advances of varying length but all lasting approximately two years.

 

Basic Declines  Different categories of market declines of varying length but all lasting approximately one year.

 

Basic Movements are either advances or declines composed of the Standard Time Spans.

 

Bottom to Top Count  A possible origin of a 107 day count in the Lindsay Timing Model prior to an extended rise.


BWI - see Bandwidth Indicator

 

Carlson Confirmation Model is a unique and simple approach to determine the "true trend" of an asset class. The bandwidth indicator measures the distance between Bollinger Bands overlaid on the asset's Relative Strength index (RSI). When the bands are expanding, the bandwidth indicator (BWI) rises and vice versa. A rising BWI confirms the trend.


 

Cluster A trading range near, or just after, the expiration of a 107 day count.

 

Coincident Counts In the Lindsay Timing Model this is an alignment of a 107 day count with various LLH counts within 24 hours of each other.

 

Compact Top Formation  The common framework of the nine variations of a Key Range.

 

Counts The number of calendar days between the origin and ending of a time interval.

 

Cupola The top of the Three Peaks/Domed House pattern which resembles the cupola of a house or head-and-shoulders top.

 

Descending Base A base which forms after the Separating Decline in a Three Peaks/Domed House pattern. This base is characterized by a series of lower highs and lower lows.

 

Descending Middle Section  Essentially, a downtrend in a long bull market typically for twenty weeks or more. The formation is used to target tops and bottoms. When the rallies in the middle section fail to exceed the top of the previous advance, it is referred to as a Descending Middle Section and normally contains only two rallies.

 

Double Bottom Top A Key Range in the Lindsay Timing Model characterized by three highs separated by two lows, the first of which is usually the Key Date.

 

Double Top A Key Range in the Lindsay Timing Model characterized by two highs separated by a low which is often the Key Date.

 

Extended Advance The longest Basic Advance and varies between 929 and 968 days.


Fade Date A proprietary indicator of Seattle Technical Advisors which combines Lindsay's 221 and 107-day intervals then confirms the targeted dates using Fibonacci time spans. The move on the targeted date should be "faded"; i.e. buy on declining dates and sell on advancing dates.

 

Final Dip A variation of the Key Range concept in the Lindsay Timing Model in which the Key Date is the final dip in price prior to the high of the advance.

 

First Floor Roof Often, but not always, a sideways pattern following the First Floor Wall in a Three Peaks/Domed House pattern.

 

First Floor Wall A sharp rise following the base in a Three Peaks/Domed House pattern.

 

Fractal A geometric shape that can be split into parts, each of which is a reduced-size copy of the whole.

 

Hanging-Man Candlestick Same as a 'hammer' candlestick but found at market tops, not bottoms. A price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies later in the day to close either above or close to its opening price. This pattern forms a hammer-shaped candlestick.
Read more: http://www.investopedia.com/terms/h/hammer.asp#ixzz1er3SPBN7 


Herd Indicator  A confirming indicator of trend proprietary to SeattleTA.


Important Count  1A count from one Important Low to another Important Low. 2A count from an Important Low to a Minor Low not more than three months later.

 

Important Low During an uptrend, a low in a Low-Low-High interval which drops lower than a previous low in the uptrend preceding the most recent high. An Important Low can also be a change in trend. Important Lows in downtrends precede an upward retracement that climbs higher than a previous upward correction in the same downtrend.



Intervals of First Principle (IFP) These calendar day intervals (107, 221, 144, 176) are taken from market extremes in the past and converge on a single date point forecast for a turn date in the Dow industrials index.


Inverted Hammer Candlestick The Inverted Hammer is a type of bullish reversal pattern. As its name implies, the Inverted Hammer looks like an upside down version of the hammer candlestick pattern. Like the hammer candlestick pattern, the Inverted Hammer consists of one candle and when found in a downtrend is considered a potential reversal pattern.

Read more: http://en.wikipedia.org/wiki/Inverted_hammer

 

Irregular Base A base which forms after the Separating Decline in a Three Peaks/Domed House pattern. This base cannot be contained within parallel lines.

 

Key Date The origin of the 107 day count used in the Lindsay Timing Method.

 

Key Range The price range within which the Key Date is located. A Key Range has nine possible variations.

 

Lindsay Timing Model A timing method used to identify the intraday price high of a market advance using both the 107 day interval and the Low-Low-High interval.


Long Advance A Basic Advance which varies between 742 and 830 days.

 

Long Decline A Basic Decline typically lasting 13 or 14 months.

 

Long term intervals The elapsed time from an important high to an important low or vice versa. The two low to high intervals are approximately eight years and approximately fifteen years. The high to low interval lasts approximately twelve years.

 

Low-Low-High interval Two price lows separated by an interval of time equal to the interval of time separating the second price low from a succeeding price high.

 

M-Pattern A series of historic cycles lasting almost 400 years from beginning to ending. The pattern describes the expected timing of a nation’s good and bad fortune.

 

Major Top Formation A top formation that extends over several months and normally includes several Compact Top formations.

 

Medium term intervals Counted in days and referred to as the Standard Time Spans or Basic Movements.

 

Minor Count 1A count from one Minor Low to another Minor Low. 2A count from one Minor Low to an Important Low.  A Minor Low is valid for no more than four months.

 

Minor Lows A low in the Low-Low-High interval which is any low other than an “Important Low”.

 

Post Top Counts A 107 day count in the Lindsay Timing Model taken from a Key Date after the high in a Key Range, rather than the more common approach of a Key Date prior to the high of the Key Range.

 

Principle of Alternation The principle holds that basic movements of the same class and direction alternate in length. A long advance is followed by a short advance.

 

Principle of Equalization In a Three Peaks/Domed House pattern, when one formation (the Three Peaks or the Domed House) falls short of the normal duration, the other pattern equalizes the total elapsed time by becoming longer or shorter.

 

Range Dip Similar to Final Dip in the Lindsay Timing Model except that the final dip, rather than being in the Key Range, is the final dip prior to the Key Range.

 

Retrograde Movement   An attempt to change the course of events in history which usually occurs before the expiration of the 40-year interval in Lindsay’s Technical History and serves to confuse the outlook.

 

Rule of Continuity When a long term, or medium term trend ends an opposite trend, of the same class, must begin immediately.

 

Second Floor Wall A sharp rise following the First Floor Roof in a Three Peaks/Domed House pattern.

 

Secondary Low A temporary bottom in a decline which occurs 13-14 months after a high in the market.


Sell Mode Triggered by the Bandwidth Indicator moving up, over its upper Bollinger Band. Implies an extended pullback in price.

 

Separating Decline  The sell-off following the third peak in a Three Peaks/Domed House pattern. The decline must terminate at a point below at least one of the reactions following peaks one or two.

 

Short Advance A Basic Advance of less than two years.

 

Short Decline A Basic Decline typically varying between 340 to 355 days.

 

Short term intervals The counts in the Three Peaks/Domed House and Lindsay Timing Models.

 

Sideways Movement An intervening period when the theoretical trend is neither up nor down.

 

Sinking Key Range A Key Range in the Lindsay Timing Model which appears as a consolidation in a declining market.

 

Special Class A Key Date in the Lindsay Timing Model such as a dip succeeding a Bottom to Top Count. 107 day counts originating at such an origin should be expected to target a short-lived bounce in an already existing decline.

 

Standard Time Spans The various durations of market moves which have recurred throughout history.

 

Subnormal Advance  An extremely short and relatively rare Basic Advance.

 

Subnormal Decline  An extremely short Basic Decline varying between 222 and 250 days.

 

Swingover In the Tri-Day method a ratio found by dividing the distance from the bottom of the Separating Decline to the top of the Domed House by the distance from Peak Three to the bottom of the Separating Decline.

 

Symmetrical Base A base which forms after the Separating Decline in a Three Peaks/Domed House pattern. This base can be contained within parallel lines.

 

Target Date  The 107th calendar day after the Key Date in the Lindsay Timing Model.


Technical History The term Lindsay used to describe the methods in his book “The Other History”.

 

Three Peaks and a Domed House A geometric pattern used to find the end of a bull market.

 

Tri-Day Method A series of calculations to determine a price target for a bottom after the top of a Three Peaks/Domed House pattern.

 

True Date The actual intraday high of an advance normally contained within a +5 day window surrounding the Target Date in the Lindsay Timing Model.

Glossaries of standard terms in technical analysis can be found at the following sites.

MTA Knowledge Base

Stock Charts.com

Investopedia

Reuters

Investors Intelligence


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