Classic TA Workplace Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Shack who wrote (129016)	2/3/2006 5:07:54 PM
From: Henry J Costanzo	Read Replies (2) of 209892

<<But that's the beauty of these choppy wedges, they are one of the few TA patterns which project turns...>> Agree.....But "turns" to what?.....Classic TA says to the intermediate point from which the wedge began..... So the first thing to assess is the size of the turn and whether it is large enough to warrant fooling around with.. But another aspect to assess is the possible ease and rapidity of the anticipated turn.....and it's here that (sorry) I have frequently questioned and kibitzed you.... It is one thing to move into a wedge situation in a stock in a strong trend in the direction of the anticipated turn, and clearly having all the technical features of that trend. Excellent example: the UTX wedge you were just talking about..... But quite another thing to move into a wedge deal with the reverse situation....a turn UP expected from a wedge in a stock in a strong downtrend, for example, may move into a very slow and belabored turn if it has to buck nearby heavy layers of overhead resistance, falling moving averages, trend lines, etc. Good example from today's discussion: Dell......which could certainly move to the 33 level you mentioned, but maybe with considerable time and effort.....I have always questioned buying this kind of wedge break ..and especially using options Sorry to have posted what turned out to look like a long sermon........but hey, it's WEEKEND...and guess I strung this out mostly to help my own thought processes...... in something that's bothered me for a loooong time!!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next