Stock Attack II - A Complete Analysis Message Board

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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: Paul Shread who wrote (135)	2/13/2001 2:03:15 PM
From: Michael Watkins	Read Replies (2) of 52237

Paul, With all due respect I think you are way overstating the importance of "perfection". A wedge is merely a series of swings that are contracting in amplitude as the overall direction rises or falls. Nothing more than that. Swings that contract in amplitude are consolidation zones. A rising consolidation zone depicts less certainty from players. A large wedge formed across many days provides ample "fuel" for a quick move, should price break to the norm, since so many will experience the 'trapped' emotion and start to bail, which helps of course to fuel the move down. So far all I've described is on the charts and with the expected reaction. If you think about the market dynamics that cause a wedge, then it becomes easy to imagine why they typically resolve in the manner that they do. However if all one thinks about is how many points that price touches the line, one is apt to miss the point and term a useful pattern 'sloppy' instead of capitalizing on it. PS: Chris' charts do not depict the wedge in the manner that mine do.

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