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Technology Stocks : Egghead Computer (EGGS)
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To: Mr. E2u who wrote (3521)11/14/1998 11:49:00 AM
From: Wayners  Read Replies (1) of 8307
 
You often can't do much of any forecasting if you have to wait for the the completion of a trendline derived pattern--because oftentimes by that point its already too late--prices will often breakout two thirds of the way through the pattern--before the pattern is ever officially completed!

Pretty hard to make any money with 100% hindsight and 0% foresight. You have to do some forecasting and estimation and more than anything else--be prepared. If you are an anal type that needs something really tangible (as opposed to 2 point trendlines <g>), use bollinger bands instead of drawing trendlines. Look for really narrow/tight bollinger bands where volumes are low and place buy stop orders just outside and above the bands in an uptrend.

You will almost never ever find points lining up perfectly--with trendlines or support/resistance levels. This is the real world, more of an art than a science. If you go by some people's criteria--no pattern is good enough to actually be classified as a pattern.

You simply have to be prepared for potential breaks one way or the other. If you are interested or if you use WOW, I can give you an indicator I came up with that is good in forecasting when the bands have reached their narrowest point for an imminent break up or down or when they have reached their widest point where consolidation will begin occurring. Its all based on statistics and probability.
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