Technical Analysis Spotlight: The 5% Canary

A webcast presentation by Andrew Thrasher, CMT as part of the CMT Association’s Educational Web Series.

About the Presentation: A presentation by Andrew Thrasher on his paper of the same name. This paper will show that the amount of time taken for the S&P 500 or Dow Jones Industrial Average to decline by 5% from a 52-week high illustrates significant insight to the subsequent trend in price A study on price history for two major equity indices is conducted to show a relationship between the duration of an initial decline and the potential for further material weakness or the opportunity for the index to reverse and move higher. With the examination of an 18th century mathematical challenge, a simple lens into the market is shown and evaluated, resulting in a tool that retail and professional investors may apply to markets in the pursuit of capital preservation and appreciation