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To: Sly_ who wrote (261)	2/20/1997 11:31:00 AM
From: Trader X	of 17305

\| David, re: What is TA \| TA is abbreviation for technical analysis. TA is the study of past price patterns of stocks and indices to determine the probable future movement in price. The reasoning is, not every fundamental and insider factor can be known by the investors. But every one of these factors is presented in the price movement. Prices run in trends, and reverse trends in patterns. Reading these patterns and trends is much like determining the future direction a boat will be heading based on the direction it has been going in the past. If you notice the boat has been making a starboard turn recently, you can assume it will continue to turn starboard. The longer it keeps moving in the same direction, the safer you can be in your assumption. This is how TA works. Computers have allowed for greatly more complex studies involving all kinds of data analysis. But I started by drawing charts by hand on chart paper with data gleened from newspapers. Kevin

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