The 4 week rule

[Anyo]

Hi - I have read 'The 4 week Rule' which states: When prices hit a 4 week calendar high go long, and when they hit a 4 week calendar low go short - i.e. stop and reverse.
I can't get my head round this since to reverse from a high is to go short and vice versa.
Can anyone enlighten me please?

 

[TheBramble]

Hi - I have read 'The 4 week Rule' which states: When prices hit a 4 week calendar high go long, and when they hit a 4 week calendar low go short - i.e. stop and reverse.
I can't get my head round this since to reverse from a high is to go short and vice versa.
Can anyone enlighten me please?

This is of Donchian extraction and you're not talking about a stop and reverse. It's suggesting that a new 4w week low will more likely lead to further decline and a 4 week high will likely lead to further advance. Nothing to do with stop & reverse.

 

[bigearbull]

This is of Donchian extraction and you're not talking about a stop and reverse. It's suggesting that a new 4w week low will more likely lead to further decline and a 4 week high will likely lead to further advance. Nothing to do with stop & reverse.

Pls explain more about the Donchian's Rule. Thanks.

 

[Anyo]

This is of Donchian extraction and you're not talking about a stop and reverse. It's suggesting that a new 4w week low will more likely lead to further decline and a 4 week high will likely lead to further advance. Nothing to do with stop & reverse.

Many thanks - I have now Googled 'Donchian' and found out all about it. I've added it to my charts and will see how reliable it can be.