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Strategies & Market Trends : Classic TA Workplace

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To: ajtj99 who wrote (62460)	12/31/2002 5:18:39 PM
From: Shack	Read Replies (1) of 209892

Whoa..which one?-g/ng You've drawn a lot of lower lines which may or may not be part of a wedge but I don't see how you drew the top lines. Just kind of hoping that what we saw today is a wedge point? I think something that is lost on wedge followers is exactly what dynamic is at at play. In other words, why do they work. What happens is that price makes a new low (or high in the case of a rising wedge) and is unable to build upon the putative new low (high) breakout. The momentum does not carry. What that indicates is that there is a lot of scale down (up) buying (selling) pressure. Eventually this scaling pressure overwhelms price and it turns back hard. In the case of your wedge, we see a very straight wave off the 26th which made a new low and has not shown any reversal of that momentum as of yet. Indeed down is coming quite easily. And although I am on alert for that SOX wedge, I have a similar problem with that one. Still it keeps me on my toes as a short.

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