To: Hawkmoon who wrote (16442 ) 1/26/2000 5:39:00 PM From: Hawkmoon Read Replies (1) | Respond to of 28311
http://www.siliconinvestor.com/research/chart.gsp?i3=1&i2=9&... If you note those Bollinger Bands, you'll see that they are "pinched". Folks... that is about the most bullish sign that can find that this stock may be moving back northward in a HARD AND AGGRESSIVE FASHION For the number of people who have PM'd me and asked for some help on reading the T(A) leaves better, let's review what we saw happening yesterday on the hourly chart. If you will remember I stated the above and I felt that the trend would be positive on the Bollinger Band pinch. I was proven correct today (thank you god!) and we had a nice trading move of 6 points today until a retracement towards the end of the day. Bollinger band formations are great for assessing the potential of a major move in price. They represent a decrease in the volatility, or as a I analogize it, a "face-off" between buyers and sellers and a period of indecision as to when way it will move hard (recognizing that 80% of a stock's movement usually occurs in 20% of its trading time, the rest spent retracing and consolidating the gains or losses). The tighter the "pinch" x the length of the chart period = the size of the potential move. For example, looking at todays 30 minute chart we see an EXTREMELY tight BB formation:siliconinvestor.com Since the 30 minute is a microcosm of the 60 minute and daily chart, the move that will be made will likely be relatively smaller and more volatile. So tomorrow GNET will move one way or another (I still believe the trend is up despite the lack of confirmation in the MACD or Stochastics) for a couple of bucks and then we'll need to look at the 60 minute and daily charts to determine the intermediate trend. In those charts there is a sense of real indecision and nothing determinate in the stochastics or MACD, both of which appear to be weakening or "rolling over", but with some volume could easily reverse themselves back to the upside. (as of this writing, the daily chart has not been updated) Tomorrow and Friday will prove to be decisive days in determing the intermediate trend and whether or not this nascent 45 degree upward trading channel we appear to be forming can hold. Again, I'm not professing to be an expert here, but just passing on the information that I have gleaned from watching the real experts.. And it saves me from having to respond to several PMs when I can put it out there publicly for all to see. And I certainly appreciate all other comments and alternate analysis to my comments. That's what these discussion threads are for, to assist and educate one another about the factors that impacts our investments. Regards, Ron