Coincident Counts

“When several counts jibe so perfectly we have the ideal setup for a sharp decline immediately.” In this case, Lindsay was referring to counts expiring within 24 hours of each other.

The first task is to locate a Key Range (there are several Key Ranges in the time frame shown in Figure 10.1). The Key Range between May 31, 1962, and June 6th is an example of a Sinking Key Range (a consolidation in a declining market). This key date is an example of a Post Top Count (PTC) because we have identified June 5th as the key date but the high of the Key Range fell beforehand on May 31st. Counting forward 107 days from the key date targets September 20th. This targeted date is two days after the intraday or True High on September 18th, which is well within the count’s five-day window. (As for the high of August 23rd, workable counts have been found for this high, but they don’t coincide within 24 hours; hence, they are not “Coincident Counts.”)