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

To: bdog who wrote (30828)	7/8/1999 3:23:00 AM
From: Doug R	Read Replies (1) \| Respond to of 79260

Bdog, There's a slight supposition problem in your backtest code. A day 4 sell is not the goal of the HA approach. I have often seen HA linger on for weeks...on a few occasions, months. Once the formation is seen, the potential remains in place beyond day 4 until a sharp move up is produced or unless a break below a critical trend line occurs The 3 most important things about trading HA stocks are: 1.) The scan only brings forth candidates. Granted the bias is toward good candidates but each will behave differently (if only slightly or even greatly). The candidates have a favorable amount of technically built-in potential to them. Entry decisions are best made on a case by case basis...ie volume and an uptick. 2.) The timeframe dictated by the concept is no more than 3 days beyond the initial launch and is most often 1 1/2 days. 3.) Breakdowns out of an HA formation can get quite severe...quickly. Doug R