Three Line Break Overview

This is a weekly view of the three line break for the S&P (hereafter referred to as "3LB"). This chart is showing where the S&P became bullish in 2009. The mid (or wkly rev 50%) is the 50% price of the 3LB range. By the time the market gets to the mid a change in trend may be underway. After a reversal you can change from bull to bear (or bear to bull) but it's best to wait for confirmation by another higher (or lower close). Some prefer to wait for the trend. The trend may be late but it's considered a safer entry point.


Monthly view of the S&P gives you a long term view of the trend. This chart shows where the S&P reversed down in 11/2000 and up in 10/2003. It also shows the recent moves in the market with a reversal down in 1/2008 and a reversal up in 7/2009. The midpoints shown are for the final range of the 3LB before the reversal.
In 9/2000 the S&P closed below its mid and it reversed down in 11/2000 (closing below 1389.07). In 5/2003 it closed above its mid and reversed higher in 10/2003 (closing above 1040.94). From 5/2006 to 8/2006 there was a reversal down but there was no confirmation (lower monthly close). In 9/2006 it reversed higher. In 11/2007 the S&P closed below its monthly mid and on 1/2008 it had a monthly reversal (closing below 1438.24). In 4/2009 the S&P closed above its monthly mid and reversed higher in 7/2009 (closing above 968.75). Started trending in 9/2009 and hasn't stopped...yet.

AMZN
Here's the monthly view on Amazon. Figured out something on annotations. See if you can understand the chart from what's presented.




WTI
Having problems staying above the 20 SMA. The 20 is crossing below the 50 which could be signaling weakness. The 3LB range is small and makes it easier for a reversal. Once it does reverse (from what I see in the chart) it will continue for some time. With so many tankers storing oil I don't see how the price can actually rise. There is too much supply and demand is weak.

The shorter the time frame the more signals you get. That's why I like the monthly 3LB for the long term trend and the weekly 3LB for short to intermediate term trends.