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Strategies & Market Trends : AMIGOS INVITATIONAL YEEHAW PORTFOLIO -- Ignore unavailable to you. Want to Upgrade?

To: James Strauss who wrote (879)	8/5/1999 6:11:00 PM
From: j g cordes	Read Replies (1) \| Respond to of 1316

End of Day Commentary.. Thursday Aug 5th '99 // For those who don't really understand the concepts of trend and range, here it is. Trend is the slope of x number of days. It can be drawn by generating a linear regression (which I prefer), then copy a paralles regression line across the tops and copy it again across the bottoms of the up and down occilations in your chart. When the price breaks to the upper or below the lower line, you've broken trend for x number of days. No big deal to understand, if one just makes sure to ask what number of minutes, hours, days, weeks, months or years someone is talking about when they say the trend has been broken. Range is more fun. The simple explanation is range is between the upper and lower lines of trend. A stock can be successfully traded within its range.. up then down, up then down. I like to think of range as being like how many lanes you can wander back and forth on a highway. Go too far to the left or right and you're out of bounds in gamblers' territory. Because of range and trend you'll find that volume collects at price areas for many stocks. They're called support and resistance, or like my highway analogy its where most cars turn back towards the center of the road. From an aerial view you'd expect to see lots of tire rubber collecting on either side of the trend/range highway and you do. Likewise on an aerial view of a stocks trading pattern you see volume collects in price ranges. Tomorrow more Federal news on the economy.. don't you ever wonder how many people it takes to collect this crucial data and how many actually keep their mouths shut the day before? Bonds eased today. Jim