First, remember time is the most important of all factors and not until sufficient time has expired does any big move up or down start. The time factor will overbalance both space and volume. When time is up, space movement will start and big volume will begin either up or down, Time rules. Always consider your annual forecast.
Second, consider each individual stock and determine its trend from its position according to distance in time from bottom or top. Each stocks works out its 5, 10, 20, 30, 50, and 60 year cycles from its own bottoms and tops, regardless of the movements of other stocks, even those in the same group.
Third monthly reversals or changes in trend often occur after two to three months. the change starts in the third month, according to the main time factor you are working in.
Fourth, weekly time rules. A stock will run down two to three weeks and sometimes four but as a rule a reversal or change will occur in the third week and will only run three weeks against the main trend. In a bull market two weeks decline, or possible three, and in the middle of the third week the trend will turn up and close higher at the end of the third week. In some cases the change in trend will not come until the fourth week. Then the reversal will come and it will close higher at the end of the fourth week. All of these rules are reversed in a bear market.
Fifth, rapid advances or declines on big volume will run about seven weeks. These are culmination moves up or down. Watch for bottom or top around the 49th or 52nd day, although at times the bottom or top will come on the 42nd to 45th day and a change in trend will start.
Remember that at the end of any big movement, either monthly, weekly, or daily move, some time must be consumed for accumulation or distribution. So, you must allow for this. Watch your angles and time periods. After a market has declined seven weeks, it may have two or three short weeks on the side and then turn up, which agrees with the monthly rule for change in the third month.
In regard to daily time rules, the daily chart gives the first change but remember it may only run from seven to ten days, then follow the main trend. The weekly chart will give the next important change in trend but remember it may not run more than three to four weeks or in extreme cases not more than six to seven weeks, then reverse, and follow the main trend.
The monthly chart may reverse and run down three to four months, then reverse and follow the main trend again, or run up three to four months in a bear market, then reverse and follow the main trend, although as a general rule, in a bear market stocks never rally more than two months. they start breaking in the third month and follow the main trend down.
Never decide that the main trend has changed one way or the other without consulting your angles from top or bottom and without considering the position you are in, in the cycle of each individual stock. When extreme advances or declines occur, the first time that the market reverses over one-fourth or one-half of the distance traveled, in the last section, you can consider that the trend has turned up or down at least for the present.
It is important to watch space movements because when time is running out one way or the other, space movements will show a reversal by breaking back over 1/4, 1/3, or 1/2 of the distance of the last move, which indicates the main has changed.