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56  ie/fti/«
levels of the following: One, the full range of movement from the price at the 1983 high, down to the June 1984 low (or 19 points), added to the 1983 high of 46. This gives 65 as an objective (ewing objective). Second, is from the high in July, 1985, to the low in September, 1985 (or 12 points), added to the nigh of July giving 64 as an objective. So, we know that with 100 percent of two ranges coming out in price in the areas between 63 3/4 and 65, that there will be significant resistance in that price action. Now, move back to the daily chart. There was a low at 40 on September 26th. The low on October 25th wes 30 calendar days from that previous low, and wae where the strong drive up started. So, either of those two dates would be important to run the calendar day cycles from, but since the date of October 25th was 30 calendar days from the previous low, the counts from the September low, also, count for the October low, by subtracting 30 days from each count. Therefore, 180 calendar days from the October low is 210 from the September low, and so forth. The turning point that was developing for the 25th through the 27th of March, 1986, was a good setup for a correction. Since wa couldnt qualify this movement up as a blow off in price, there would need to be a period of time to allow for distribution before any aerious trend change to down. Price broke the support angle on April 2nd, and forward from that date, the next turning point would be April 7th or 8th, with a few daily rangee equaring out, including the significant range from the January high, to the low made on in September. If you will check your weekly chart (Illustration 8.9), you will see that the weeklies have a range squaring out in this week, and prioe movee down into that time frame, testing a fast angle up from zero, which could yield a fast move up. This angle is reached in the 6th day down from top, which is the longest period of time that this stock has corrected in the drive up, and is, therefore, significant. The angle gives support, but the move up is laboring as it approaches the old top. As price moves into the 210th calendar day from the bottom, or the 180th calendar day from where the trend turned up, we see the familiar setup of a high day followed by a sideways move of 4 to 5 days, and then price breaks the low of that sideways move. Citicorp is showing a double top in April, while the market is moving to new highs. After this correction down, price moves up quickly to the old high, and then shows a triple top, which is not on this chart. I had marked the period between July 3rd and July 7th ss a significant turning point because time was 360 days from a significant high, and 180 days from a high. Study the daily chart. Look at the reversals that happen when minor or major ranges square out (which I have marked with arrows on the angles), and youll see a very strong probability of finding a reversal. If price is moving sideways, then price will often give the start of a move out of that sideways formation. Certainly, the squaring of ranges on the daily chart gives us turning points, but the ability to qualify the move is very
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