fifty percent of the December, 1976 high in both, price and time. So, the December bottom is, also, very near this fifty percent of the high support level, and showing increased support.

You would know to look for resistance at the 2X1 angle moving down from the September top on the monthly chart. A move above that angle would likely give us an acceleration in price up to the old top of 59. Of course, given we can see the price now, it is obvious it only made it up to 58 in this instance, but still a nice move. If you rememberea the square of the high, the 50 percent mark is at 56 to 57, so you could consider that to be the target price.

Now lets move to a later time period with GM. Again, look at the weekly chart. I have drawn two squares of ranges on the chart, but notice the 45 degree angle moving up from the 11/1/85 bottom. When this angle hits the February, 1985 price of 85, the range is squared from low to high. That price level was within two points three times the 1974 low of 29, the significant low on the monthly chart. From the December 20, 1985 high, the 45 degree angle down crosses the level of the low at 64 in nearly the same time frame. The 45 degree angle up from the January 17, 1986 low crosses the level of the December high, again, in the same waek. There is very little in the way of confirmation from the cycles cf years on the weekly chart, in this instance, but the ranges squaring is good evidence that a change could occur.

If you will look at the same time period on the daily chart, you will see that price is in an accelerated move up that week. (Illustrations 7.8 & 7.9) One of the high probability methods of determining when an acceleration up will end, is to look for the first day price closes, below the 4X1 or fast rising angle, which in this case comes from the /14/86 low on the daily chart and supports price movement up until the day after the top. That day, the 3lst. price breaks the angle, and the assumption is that the acceleration is over.

When you see a spike move up, like this, followed by a spike down, the ideal setup would be to go short the stock or to buy

Euts, on a lower top. So, what do we know that would give us a ower top? First, we know the typical move against trend is three days, with a change in direction on the forth day. In GMs case, on the daily chart, we are looking for three days of prioe rising, which is followed by a fourth day with price beginning to fall again. If we get this, and show a lower , then we have a good indication that the trend is down, and a good time to short.

Now, here is something new to add to your "tool kit." A move that is symmetrical, or follows a 4X1 angle up, and then a 4X1 angle down, will yield a high probability of an excellent turning point (in this case a day), when that 4X1 angle down hits the price level of where the original 4X1 angle started from. This is the triangle on the daily chart.

This triangle gives us a timing day which is apparently the 14th, although this may not be exact. The division of the square of the range on the 4X1 angle from the high, to the low of the 4th.

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