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

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To: Gary105 who wrote (4858)1/18/1998 8:25:00 AM
From: Doug R  Read Replies (1) of 42787
 
Gary,

Here's 180 days.

iqc.com

If you look at all the days on that chart that RADAF was challenging the upper BB, you could have chosen any of a number of days going back to June as a signal to sell. The IL is a static diagonal line that was in existence going back to May '97 and flashed a sell signal at the early Sept, mid-Oct and mid-Dec tops. Those tops led to the 3 largest % drops during that period. At first glance then you would think it's just a normal channel line but few stocks ever reach the IL and RADAF was particularly stubborn about challenging it. It is constructed using the same rules for any stock and often goes 2 or 300% above the current price of a stock so when you look at it you would think that it's impossible for the price to reach it. Hence the name. When coupled with the ACT you get a better idea of when to re-enter the stock. The rebound from the ACT is nearly always a large, fast move where with the BB's it's not so clear what kind of rebound you will get. With Bollinger Bands you never know how far up or down they will go in advance. With the IL/ACT you do. Often a stock will challenge the IL just one time and after a rebound from the ACT it will set up a new IL. There's more but I think this is too long already.

Doug R
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