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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: Alan Smithee who wrote (32384)	5/9/2000 5:01:00 PM
From: Ms. X	Respond to of 63513

Yes, just the opposite. For a positive PO you count the column of X's that create the buy signal after the last sell signal. So, for a negative PO you count the column of O's that create the first sell signal after the last buy signal. A triple bottom is a good indication to start a negative count. HLIT 156 X * 154 ------X O * ------------- 152 X O * 150 ------X O X --* - 148 X O X O * <--Top O. 146 X <--Last Buy signal. 144 X X O X O * 142 X O X O X O * 140 3 O X O X O ----------* --- 138 X O X O X O * 136 X O X O X O * 134 X O X O X O * 132 O O O * 130 --------O <--Sell signal and the column of O's to count. 128 O * 126 O * 124 O * 122 O * 120 ------------O X <--The reversal into X's that terminates 118 O X O the counting column of O's 116 O X O X 114 O X O X O ---------------- 112 O X O X O 110 O X O X O ---------------- 108 O X O X O 106 O O X O 22 O's. (22)(3) = 66 (66)(2) = 132. 132 subtracted from the Top O (148) = 16. Wow. That is a lot of momentum to the downside. What reverses the count is the next buy signal and basing (support). It looks to be doing that and in fact it did create a base and a new buy signal. We can count from there. 80 O X O X O ----X <--Buy signal. 79 O X O X O X 5 O 79 78 O X O X O X O X O 78 77 O X O X O X O X O 77 76 4 X O X O X O X O X 76 75 O X O X O X O X O X O X ------------75 - 74 O X O X O X O X O X O X 74 73 O X O X O X O X O X O X 73 72 O X O X O X O X O X O X 72 71 O X O X O X O X O X O X 71 70 O X O X O X O X O X O X ------------70 - 69 O X O X O X O X O X O X 69 68 O X O X O X O X O O <--Sell signal. 67 O X O X O X O X ----O X ------------67 - 66 O X O X O X O O <--Count this column. 10 (10)(3) = 30 (30)(1) = 30 30 subtracted from the Top O (75) = 45. Which looks about right for support.