Stocks Crossing The 13 Week Moving Average <$10.01 Message Board

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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01

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To: Casaubon who wrote (6341)	6/23/2000 11:41:00 AM
From: James Strauss	Read Replies (1) of 13094

Causaubon: The technical themes of support and resistance can be likened to the old fashioned need to take or defend a hill... Each hill had strategic importance for the defenders and attackers... The hilltop is the resistance point... Breaking through there exposes new territory... Just like when a price resistance is broken, new highs can be achieved... If you are pushed back from the hilltop, you may not be able to make a second attack... In fact, there may be a counter attack while you're retreating... This is why volume is so important when attempting to break through resistance... The greater the pounding of the resistance area, the greater the chance to break through... If the attack fails, you retreat to your defensive position lower down the hill... There, you regroup and get ready for the next attack up the hill... Sometimes the counter attack from the hill top will try to push you back further than your current defensive position... This is similar to the support area on a chart... As long as you can hold that position it gives you a chance to begin retaking ground on up the hill... An analogy to a price recovery... Jim

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