"I am a recent subscriber. I am enjoying your service. I wondered if you could please point me to some definitional materials on your website. You often reference the short term, medium term and lots of talk about upward and downward dynamics. I just wanted to get a little more clarity on what you mean. I looked in the 'search' facility on the website but the terms are used so much that the search was crowded with references rather than definitions/explanations.

"I completed your 'The Chart Seminar' via NCB in Dublin on the 26 and 27th of November 2007, and while I have still have the tome that you provided, I can unfortunately no longer find my own handwritten notes - which I am deeply disappointed about."

David Fuller's view Thanks for the feedback and I am sorry to hear about the lost notes from TCS.

We do not yet have a specific definitions section but we should add one. Periodically, we do define our terminology, which we try to keep simple, but definitions are not always easy to find on the website. I did find this clarification of short, medium and long-term, using the Search word 'parlance'.


By coincidence, I did discuss the difference between a reaction and a correction in the Audio tonight, before I saw your email. Basically, there are lots of reactions which we define as small (in percentage terms) setbacks or consolidations lasting a few weeks. Corrections within medium to longer-term trends are less frequent, bigger than reactions and of medium-term duration. You will see mean reversion corrections to the 200-day MAs on these weekly charts of the S&P 500, DAX, Gold or any other instrument.

By dynamics, we mean sudden, sharp contra-trend moves which can change perceptions for at least the short term, usually by signalling that a trend is encountering resistance. These are first seen on daily charts. You will see several downward dynamics on this daily chart of cotton since August, as they are the larger red candles which triggered short-term reactions. The last one, on an overextended push to $150 was the biggest and a key day reversal, almost certainly establishing a peak of medium-term significance and the beginning of a correction. A review of the charts will reveal plenty more downward dynamics in commodities and a number of stock markets, occurring over the last week or two.

I think you would benefit from a return visit to The Chart Seminar. There is much to absorb during a first two-day workshop, especially if you are comparatively new to the subject.