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To: sea_biscuit who wrote (9366)	4/18/2000 8:07:00 PM
From: Kirk ©	Respond to of 42834

It is TA to me (meaning good for looking at the past, but not predictive.... unless many believe it to be true). Anyway, I am not an expert either, but my understanding is a "test" means you "test but not breach" a benchmark low. IF you breach the low on a test, then it starts all over. I was actually looking at LRCX for a trade yesterday at the open and its benchmark low was just under $34. It tested this but did not cross it (or come close) so I jumped on it at $37 before it took off. Seems to have worked, but it could be luck as well. 8) What is funny, is some might argue it was not a "good enough test" or "it needs more time between the low and the test" or "you need 18 months for a bear market" or....... you get my drift? 8) Fun to play with and debate, but I still like long term fundamentals for picking stocks. It sure can indicate a good way to buy cheap. Kirk out

To: sea_biscuit who wrote (9366)	4/18/2000 9:42:00 PM
From: Mr. BSL	Read Replies (1) \| Respond to of 42834

Sorry, my understanding is that it has to make a closing low (or breach the lows at least once intra-day) and it has to do it on lower total volume for the entire day. Is that wrong? You've got it right. That's the rule. That's the way that it always seems to work. There is one exception out there - The 8/28/98 DJIA low of 7539 was successfully retested five weeks later on 10/8/98 on high volume. On 10/8/98, the average dived to 7399 intraday before finishing at 7731. Five weeks. Hmmm. The March 7 S&P500 low of 1356 was put in 5 weeks ago and successfully retested last Friday on high volume. Maybe this is the second exception to the low volume rule. We'll know soon enough.