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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 (31239)	7/24/1999 3:41:00 PM
From: Doug R	Read Replies (1) \| Respond to of 79230

Wang, QCOM could very well move in a manner that may test your risk tolerance. I can't adjust your tolerance for you but I have seen only one stock defy the IL. MSFT. There may be others but I haven't found them yet. The ACT is also an uptrend line so the longer a stock takes to return to it, the smaller the drop. QCOM took 16 weeks to get over the IL. The time back to the ACT is often 1/3 to 2/3 of that which is why I have set the time frame to 10 weeks. It's best not to stretch margin too thin when initially shorting an IL violator. That way, if the stock does get "stubborn" and go to a new high, the position can be added to or at least remain in a comfort zone. This would not be a system failure, just a situation calling for patience. I can understand your hesitation to accept the IL/ACT/RR method coming right of of the blue like it has for you but I think you'll get more comfortable with it eventually. Doug R