Mikula Forecasting Company

Mikula Forecasting Company: Trading Strategy #9
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Written by: Patrick Mikula CTA
Copyright (c)2003-06 by Patrick Mikula All Rights Reserved. (Please to not copy or foreword this article).

Mikula Forecasting Company
P.O. Box 152672
Austin, TX 78715-2672
USA
www.MikulaForecasting.com
support@MikulaForecasting.com
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First Chart: Daily Time Frame

Donald Bradley's Siderograph was developed in 1948 and has stood the test of time as an indicator for the major stock indexes. The Siderograph was developed for the DJIA but works basically the same on the S&P500. The chart below is a daily chart for the S&P500 and the Siderograph is shown in the subchart. The major turns in the Siderograph are marked by vertical pivot lines. Notice that the recent major pivots in the Siderograph correlated with turns in the market. The Siderograph pivots A, B and C correlated with market bottoms. The Siderograph pivot D correlated with a S&P500 market top. Notice that the next pivot in the Siderograph at E, occurs in the next few days. This would indicate that there is a higher than normal probability for a market pivot to occur in the time window area seen on the chart below.


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