Conclusion

In a newsletter dated September 4, 1968, Lindsay shared some tips for recognizing a Domed House that the reader should find helpful: “Here’s how the advance of January 1967 could have been recognized as a Domed House. All technical measurements of the market were terrifically strong; the advance-decline line, odd-lot indexes, volume and momentum studies, etc. They were entirely too favorable for the move to be just a rally in a bear market. On the contrary, they suggested a major bull market had begun. Yet after rising only three weeks, the Dow-Jones Industrials stalled. In a genuine bull market and after such a powerful start, the average would have kept going. It wouldn’t have hesitated as long as it did before and after [the top of the First Floor Wall]. It was a combination of a bullish technical position and a sideways movement which began prematurely and lasted unduly long. The only way of reconciling the contradictions was to assume that a Domed House was under way.” In his August 16, 1972, newsletter, Lindsay wrote that the most important long-term interval lasts about 15 years or somewhat longer. “It is needed to understand the Domed House fully.” The 15-year interval is covered in Part IV.

George Lindsay is most well known for his Three Peaks and a Domed House model, no doubt due to its descriptive, if awkward, name. While many technical analysts are familiar with the name of the model, very few have any experience using it. Even a superficial familiarity with the model should be of great benefit to the most passive investor. While the array of possible counts may seem confusing at first, Lindsay shared several examples (see Table 3.1) in which only the basic form of the model was present at several market tops and the counts that he had established were missing. The 3PDh model is one of those few methods that will yield results to the beginner and continue yielding as more effort is expended on the part of the student. Part III examines the Lindsay Timing Model, which is both its own, free-standing model as well as the concluding technique for determining the correct count for the 3PDh model.