Richard Donchian, the man whose work launched a thousand trend-following funds, also left us a...

|By:, SA News Editor

Richard Donchian, the man whose work launched a thousand trend-following funds, also left us a counter-trend idea. While an individual stock breaking below its "Donchian Channel" gives a sell signal, many stocks dropping in this fashion at the same time indicates an exhaustive selling wave and maybe a market bottom - exactly what the stocks of the Nasdaq 100 are now indicating.