Hi Hugh, I, too don't put all my faith in linear regression all by itself. And, yes, I also agree that it has its best effectiveness on a much longer term. Sometimes, though, the channel defined by the lines parallel to the regression line, even on a relatively short-term basis can be somewhat instructive if there is some deliberate trading activity going on. That's kind of what I seem to infer from the recent downward trend of AXC. MLIN (MicroLinear Corp.) demonstrated the same behavior before it based horizontally, then broke through the upper channel boundary and then took off (to the tune of appreciating 90%+!!). It looks like AXC may be starting to base, which would seem to indicate at least a halt in downward movement.
Anyway, I also use indicators such as accumulation/distribution, momentum, stochastics, other classics and some other esoteric ones that come with Window on Wall Street and TC2000.
Thanx for the reply...
Ron |
