The 56 Point TA; Charts With an Attitude Message Board

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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude

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To: Ocote who wrote (11061)	1/22/1998 12:03:00 PM
From: Doug R	Read Replies (1) of 79281

Ocote, "I also wonder about the line defined by RSI tops of 6/13, 7/30, 10/7, 1/5 & 1/20. It is broken by head of a little H&S at 12/5. Does it still have importance? The length and number of times touched or nearly touched seem to relate to this whole topping out period." That is an example of how long a trend line can remain pertainent. The staying power of trends is the reason I try to use as long a chart as possible when analyzing a stock. The Nov. '96 RSI peak and subsequent downtrend may remain a factor for quite some time. During the time period you are referring to, you can also see 3 consecutive H&S formations in the RSI. We're on the 3rd one now. The first two led to breaks. Those breaks have led to the formation of a left shoulder and head of an inverted H&S (IH&S). It's now in the process of the right shoulder which so far may or may not go deeper. If a breakdown of that 3rd H&S goes lower than the last, the technical picture will start to deteriorate more rapidly I would think. The IH&S scenario would be encouraging for a more bullish outlook. Quite a decision is in progress right now...stay tuned. Doug R

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