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

To: bazan who wrote (33153)	12/24/1999 3:56:00 PM
From: Doug R	Respond to of 79237

Bazan, >>In English, what does this mean <g>? I presume entry/re-entry (pegline) would be between $9.<< The Pegline is established by the top on a monthly bar. MLIN's monthlies are still climbing so a Pegline* cannot be drawn yet. When this monthly swing top is finally reached, go to the daily chart and draw a line from the alltime high to the day the high for the month was made. A break over that line on supporting volume will be a renewed buy signal. For now, MLIN's got plenty of momentum to establish that top well over $10. *As an example...take a look at a monthly bar chart of MITK. It became a MIMBO in 6/99 and established its first Pegline at the high reached in 7/99. It broke over that line in 9/99 and set up the next higher Pegline in 10/99. On 10/8 it broke over that one and is now sitting on the retest of that Pegline break. A volume supported move up from this retest will take the price of MITK to 6 1/8 or higher relatively quickly. The previous Pegline breakout was on 9/16 as it crossed above 3 1/8 with entry at 3 1/2 very possible. In about 3 weeks it got to 4 23/32 and a sell at 4 1/2 would have netted a 28% gain. Not too shabby for a position trade. The same type of line can also be used on a weekly chart for more frequent opportunities to trade a MIMBO. THEN...there's buying into short term oversold at the lows after a Pegline is established. More upside potential but a bit more stressful. >>gg<< Doug R