Signs of a reversal

click on the image to enlarge and check the signs for a reversal.

The completion of wave C has taken much longer than anticipated. However, Wave C has now almost completed 5 waves. When this happens we will see a huge reversal. What are the signs of the reversal? This is what I look for:

RS/Relative strenghth should be above 70. It is there now.

Waves: we should be in the 5th wave. We are there now.

Macd: the black line must cross the gray line. Not there yet!

Stochastics: the black line must cross the gray line. Not there yet!

Moving averages: I use the 10 day moving average and the 20 day average and the 50 day moving averages. When the 10 crosses the 20, it is a short term reversal. If the 20 crosses the 50 day average, it is an intermediate reversal.

When all signs point down, pull the trigger, make your move.

This is a chart of the QQQQ on January 7th which illustrates the above signs.