ARTICLE SYNOPSIS ...The Overlay Profile For Current Market Analysis Part 2 by Donald Jones and Christopher Young Perhaps the best way to learn how to apply long-term overlays to trading is by example. Normally, the trader follows the overlay until an equilibrium time period is identified. The breakout is then noted, the trend is traded and, finally, a new equilibrium is reached and the process begins again. The Treasury bond September 1988 contract from March 21 through June 7, 1988, begins with an equilibrium (bracketing) period (March 21-31), moves into a downward trend (April 4-May 31) and then rebounds from...