The Bearish Vertical count. Look to the first
sell signal off the top and count the number of O's it moves
down before reversing back up. You wait for the reversal up into
a column of X's before counting the number of O's down to ensure
there will be no more O's added to the column.
Once you have counted the O's, multiply by 2 (this is where the
bearish count is different from the bullish count) and then multiply
that product by the value per box. This is because the market generally has a bias towards the upside so we multiply by a smaller number. Subtract this result from the top O
Let's break it down.
1:
Find the last buy signal on the chart
2:
Find the column of O's that create the sell signal after the
last buy signal.
3:
Determine if the run in the column of O's has been terminated
by a reversal.
4:
Count the column of O's with the sell signal.
5:
Determine the price level at the top of the column of O's.
6:
Start your calculation.
Formula: (# O's)(2)(box size)-Top O
= PO
There were 10 O's in the column.
10 x 2 = 20.
20 x 1 (box size) = 20.
31 - 20 (top O at the $31 level). = 11
