Tonight I created a chart using historical data from all 3 crashes (Dow 1930, Nikkei 1990, Nasdaq 2000-1). It turns out that the Nasdaq has fallen farther, and faster than either of the other two. Check it out: http://www.iwinfree.com/comparison.htm
Wow excellent chart, I had no idea that the markdown in the naz was as severe as the dow crash of 30'. I guess I can now say that I traded thru and profited from the most severe stock market crash in history. PEACE, COMMISSO
Dustin, your post and chart research here makes me happy that I am paying $200 a month for my ISDN. Great job and certainly lots of reasons to sit back and think about this long and hard. By the way I have a business in CA and situation here for mainly because of the NAZ has turned shit !!!
Dustin, thanks for your post. You said "The rsi should not give extended oversold signals if there is strength". What is the extended oversold signal? How to tell in the chart?
eltr, I am talking about what you see in the last hour (orange bars) of the third chart. RSI is unable to make a recovery, and and market just keeps falling. This would signal serious selling, and I would avoid any long scalps once I figured out what was going on. In normal market conditions you could play a RSI bounce off the lower band, but on this day you would have got creamed. Thats the trick to playing RSI...
7/18/2001 UPDATE! I decided to update my comparison charts, but this time I left out the Dow. Pretty interesting I think... Check it out: http://www.iwinfree.com/comparison.htm