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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Michael L. who wrote (30209)	6/12/1999 2:33:00 AM
From: Doug R	Read Replies (1) \| Respond to of 79243

Michael, Ummm, errr, uhhhh...in reference to' "Doug, you mentioned RECY. Oh my God!!! One more argument in cutting losses very sharp. Geez, and we played that guy for half a year or more?" RECY was first brought to the thread during the Fall of 1997. You're right...time flies. At the time, its price was 1 7/8. As far as your observation that losses should be cut sharply...that is correct. However, the true lesson that RECY teaches is that profits should be taken ruthlessly. After the initial recommendation on RECY, I never suggested it as a buy after it went over 3 1/4. Once it got over 7 I pointed out that it had violated the IL. My assertion that it had topped out was met by considerable resistance by more than a few people. After the downside reaction to IL violation, it also broke below the ACT. There was plenty of time for everyone to get in before it peaked and plenty of time for everyone to get out before it crumbled. I bring this up because there are few people who actually track things over the long term. RECY was a very profitable situation...if one was ruthless enough to sell at a profit and ignore certain exhortations made by others to fall in love with the stock. Recently there was a comment about ASTN resisting "my" TA as it soared above the IL.. The fact of the matter is, the IL may be something I have been able to ferret out of charting technique but the IL was already there before I found it. The IL is not really mine...it's just something I found that nobody else had. ASTN has now shown its vulnerability as far as the supply/demand dynamic excess that the IL obviates. This weekend I'll post the ACT value for it. ASTN's reciprocal retracement off the ACT is considerable. 50% or so. Not a moonshot but very worthwhile. Warthog will also notice that RTN.B retraced to the ACT after IL violation and performed reciprocal retracement...exactly. The most stubborn IL violator recently has been CMNT. It's off its high but still above the IL. CMNT was over the IL once before and proved to be a stubborn one...like CADE was on its first IL violation. CMNT didn't even retrace to the ACT after its first violation. Instead it turned back up and reviolated the IL and got stubborn again. It's still being stubborn. It will still find the ACT eventually though. That's what TA really comes down to. My work has no control over anything. What does have control is already there. It's up to any individual to find it. Once found, it can be applied (and most findings must undergo considerable refinement) but not posessed. Ok, I've rattled on enough...time to get to work on The Project. Doug R