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Strategies & Market Trends : Chart Formations -- Ignore unavailable to you. Want to Upgrade?

To: sean sanders who wrote (215)	7/18/1999 12:32:00 PM
From: Casaubon	Read Replies (2) \| Respond to of 967

check out the chart for VISX (as a potential short) There was a break-away gap about mar 98, then there was a measuring gap at the beginning of Mar 99, then from mid april to mid may an ascending triangle formed (bullish). At this point the ascending triangle broke the "wrong" way because of percieved bad news. The VISX excimer laser patents came into question, regarding rightful ownership. A court ruling, in favor of VISX, caused the stock to gap right back to the apex of the ascending triangle, and ultimately resolve to the upside (as expected). The price action based on the size of the ascending triangle is now drawing to an end, as can be seen from the high wave (doji like), high volume signal, two days ago. 1)The high wave signal is a point of indecision. 2) We have identified the break-away gap point 3) We have identified the run-away or measuring gap point what I am now watching for is an exhaustion gap ( I don't believe the gap in early june counts as an exhaustion gap, since it was just gapping back to the point where it reacted to bad news). If an exhaustion gap forms, the stock will reach it climax, and then, within days or a week, fade. This is the making of an Island Reversal (John Murphy). I'm going to try and identify the top via recognition of an exhaustion gap, followed by a strong reversal candle, such as a doji star top.