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To: DWCraig who wrote (34824)	11/21/1999 11:20:00 PM
From: Z man	Respond to of 36349

No I'm just a novice at this TA stuff, but the posters on Doug's thread have a pretty good handle on it. Good luck

To: DWCraig who wrote (34824)	11/21/1999 11:53:00 PM
From: Doug R	Read Replies (1) \| Respond to of 36349

DW, The IL is shown to be a line that defines extremely high expectations right back where it's constructed. The short term technical profile of the stock when it hits the high that's used is....how can I say....overcooked. That high is significant in that respect. When the line is extended out into intermediate of long term areas (2 months to a year away), it then defines a level of demand that is still...overcooked. If it's overcooked short term, it's certainly going to be so going out several months. The ACT shows that there is a real reason for some exuberance. It's a relatively drastic acceleration off a previous uptrend. But...you know how people get. Rational exuberance turns irrational and the chart gets overcooked. There's tons of lines you can draw on any chart but when a stock goes over the "Impossible Line" It very nearly always returns to the ACT (actually, the ACcelerated Trendline). The ACT is what the stock is REALLY supposed to be following based on the activity of the most informed segment of the investor base. When it gets overcooked due to the momentum players and such, that segment starts cashing in their gift. It's really not so difficult to understand. It's the ACT that gets things going and the dynamic that describes irrational is in place already. Doug R