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

To: wmwmw who wrote (31223)	7/23/1999 7:14:00 PM
From: Gene S	Respond to of 79230

I have seen the public and he is you.

To: wmwmw who wrote (31223)	7/23/1999 8:24:00 PM
From: Warthog	Read Replies (1) \| Respond to of 79230

Wang Wei, One of the IL/ACT examples I remember is Radica Games in January of 1998. The symbol was RADAF (RADA now) and the IL/ACT interaction produced a reciprocal dart of 2 3/8. Doug R. predicted the bottom using the ACT to the nearest eighth. (12 7/8 if my memory serves me) hope this helps wart

To: wmwmw who wrote (31223)	7/24/1999 2:29:00 AM
From: Doug R	Read Replies (2) \| Respond to of 79230

Wang, Your sense that the IL is created privately is mostly naive. Your sense that widely publicized knowledge of the construct would affect its efficacy is quite correct. Trendline accelerations that become too steep to be maintained is not quite what the IL is about though. One facet of supply/demand dynamics I teach does touch on the unsustainability of overly steep trendlines but...the IL does not accelerate...ie it does not become more and more steep. The IL just hangs out there along its own incline, waiting. Within the confines of IL/ACT methodology there is nothing to say that any stock will reach (or violate) an IL. The salient points concerning the construct are: NEVER buy a stock that is over the IL. Be VERY prepared to sell any stock you own that has violated the IL Short a stock that has violated the IL if you are so inclined. SELL puts at a strike price below the ACT if you don't want to sell the stock. Sell puts at a price just above the ACT if you want to accumulate more and be subsidized for your purchase. Sell all the covered calls you can at a strike price 20% above the IL soon AFTER the price has dropped back below the IL to hedge the inevitable. Cover your short and/or buy at the ACT with a target that conforms to reciprocal retracement.. There's a lot of strategies around the IL/ACT. Just knowing what the heck is happening is a HUGE advantage. Doug R