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Strategies & Market Trends : TA- Advanced GET -- Ignore unavailable to you. Want to Upgrade?

To: Allan Harris who wrote (1415)	8/18/1999 12:42:00 AM
From: Lenny Rosow	Respond to of 1551

Allan - Great job on the QCOM play by play!!! Here are a few more observations as of 08/17/99 1) Not only did todays price hit the MOB right on from the wave 3 high but also the Andrews Pitchfork top tine from the same wave 3. 2) It is interesting that we both come up with the stop at about 150 but for different reasons. I believe wave 1:5 ended on 08/09 @ 149 15/16 and wave 2:5 ended on 08/10 @ 141. One of the basic principles in Ewave theory is that wave 4 can not overlap, or more importantly close into wave 1 territory or you must change your counts. Since Wave 1's high was 149 15/16 I would have moved the original stop you were talking about this weekend up to 149 7/8. Now at this time we can either be in a wave 3:5 or 5:5. Since the MOB was hit we would expect some kind of resistance. Another way to set your stops is to split them, one for the short term and another for the longer term. Let's say you own 100 shares of QCOM. Set the short term 50 share stop @ 163 11/16 which is one tick below the one day low (ODL). This locks in some good profits just in case the trade goes completely south. The longer term 50 share stop can be placed as you suggest around 150 or at whatever price any other method one uses for looser stops such as the 6/4 moving average, trend channel break, optimized Parabolic SAR etc.. 3) If tomorrow is a down day use the Ellipse study between the 08/04 low and todays high to get an idea on where the retracement should hold. If an uptrend is to continue then the Ellipse should hold the temporary move down. So far the Ellipses from wave 4 to 1:5 and wave 2:5 to 3:5 have held nicely and the uptrend continues. Again this is just an opinion and comments always welcome - Lenny