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

To: Sam Quentin who wrote (30235)	6/13/1999 5:16:00 PM
From: Doug R	Respond to of 79269

Sam, ASTN reached a high of 18. The current value of the ACT is 7 5/8. It reaches 8 on Wed. When the price gets to the ACT, subtract that price from the high, divide that difference by the high and multiply by 100 to get the % drop off the high. Then, multiply the price where it hits the ACT by that % and add it to that price. That will give you the target for the reciprocal retracement (RR). If ASTN hits the ACT at 8, the RR target would be 12 7/16.....55% Some warnings...the ACT doesn't always hold so you'll have to wait a bit to make sure it does. ASTN could react quickly off the ACT so the % to the target by the time you get in would be cut. I've also seen a couple instances where the ACT was discounted after I posted its value and those stocks didn't quite make it all the way down to the ACT before turning up for the RR. It's a stay on your toes kind of thing. Doug R