Ligand (LGND) Breakout! Message Board

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Biotech / Medical : Ligand (LGND) Breakout!

LGND 199.20

+0.1%

Nov 21 9:30 AM EST

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To: Allan Harris who wrote (17205)	3/11/1998 4:29:00 PM
From: Proton	Read Replies (1) of 32384

Re: The Technical Analysts are out in Force! >[Tony] I had always heard that a 'double-top' was a sell signal. Why is this double-top a buy signal? [His Majesty] You're right, in traditional bar charting double-tops are associated with failed breakouts and are traditional sell signals. But in Point & Figure charting techniques, the "Double-Top Breakout" is a powerful BUY signal, suggesting that the forces of demand have overtaken the forces of supply. The key is the breakout, triggering the BUY in P&F and the failure of same producing a SELL in traditional charting. Even on a bar chart, the failure of a stock to perform in accordance with a specific pattern often presages a strong contrary move. For instance, one could have made a fortune fading incomplete "Head-and-Shoulders" patterns on the SPX over the last fifteen years. [note to Bernie: do you know the one where the punch line goes, "What's 'shoulders?'"] The double-top and the temporary reversal in the BOP indicator needed more price erosion to confirm their indications. My stop was nowhere near getting hit, so I saw no reason to close the position. Had I been stopped out, the double top (which has worked well on LGND in the past) may have been enough to generate a short sale. I'd like to see an entire day's trading above 16 before I raise my stop to 15 3/16. Pý

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