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Strategies & Market Trends : Charts for Bottom Breakout -- Ignore unavailable to you. Want to Upgrade?

To: Dr. John M. de Castro who wrote (2560)	6/18/1999 11:21:00 AM
From: Ed Huang	Respond to of 3105

Thanks for the alert John. I will put that into my consideration. On the other hand, I am a short term trader, I watch the price movement closely, make buy and sell decision quickly. But it's good to know the info. Sorry for not being able to answer you question earlier because of the trading. Existing support and resistance on a chart are often clearly visible. In PARS case, the chart shows when the price hit 1 5/16 or 1 11/32 it bounced back up and this repeated a few times. Which means there's more demand than supply at this price level in this time period. We call this level as technical support in TA. The chart also shows that when price moved to 1.50 a few times and bounced back down recently. There's more supply than demand at that level. We call it technical resistance. When a technical support or resistance is broken decisively, the price is likely to move further in the same direction until it meets the next level of resistance or support. 1 1/8 - 1 3/16 is the longer term support of PARS. Price has bounced back up from that level a few times in the last couple of years. BTW, what software and indicators are you using? Good trading.