What is meant by short and long term respectively?
“Short term” means anything from a week to 3-4 months. We define the “short term” according to dynamic rules which we explain more in-depth in the “User manual”. This timing aspect is very important, so we recommend that you read the user manual on this aspect. But the short and rough guideline is this: Short term: a week to 3-4 months Medium term: 4- 12 months Long term: 1 year to 3 years This does not mean that if you see a “major trend” as a green arrow then you can expect the downtrend to last 1 year from the date you see the arrow. The downtrend starts when the price (the black line) crosses the moving average (the red line) in the big, monthly graph at the bottom of the page. So if this “crossing” happens in February 2008, then the downtrend will usually last at the minimum to February 2009. On average it will last until summer of 2009. A very long downtrend can last until sometime in 2010.
