In Figure 12-3, we are looking at a timing example on a daily chart of
Google stock. The general trend of this stock was up. Once we started to
see a countertrend decline, we would want to look for both time and price
parameters to help us to reenter Google in the direction of the larger trend.
Projecting the time-cycle report from the 11/22/06 high would have been
helpful in pointing out a time window where the odds for a possible low
to develop were higher. The 12/18/06–12/21/06 dates showed up on the
histogram, with 12/19/06 as the highest bar within the histogram. The
actual low was made on 12/21/06 at 452.34. You may recognize this example
from another chart example analyzed earlier using the time-cycle tool.
Either way, timing was definitely helpful in identifying a time window for
a possible low and reversal to develop in Google. As illustrated in our
earlier example, this low was followed by a healthy rally.