MDM (Market Direction Model): Distribution days

Published : September 14 2010 at 14:53 ET

Q: Since the MDM went to a buy on 1 September, I don't really see any "traditional distribution" days, let alone four of them.  I'm assuming most of those distribution days happened before the buy signal on the 1st? Do you use a rolling one month count regardless of follow-through day signals?

A: In general, I use a rolling 20 day count regardless of follow-through day signals. That said, there are exceptions to this that depend on unusual market action.

While the current trend since the follow-through day has been up, my studies have shown it is best to not cancel distribution days simply because of a follow-through day.


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