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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: JD who wrote (23607)	5/28/2000 6:43:00 PM
From: Dan Duchardt	Respond to of 42787

JD, Thanks for that link. I'm certainly no expert, and first heard of the diamond pattern only in the last month, but if I might be allowed to reflect on what I see in this link and relate it to other messages posted on this subject: The figure in the link represents the diamond as a parallelogram, with the closing edges parallel to the opening edges. IF that can be construed as a characteristic of the diamond pattern, the slope of the lower closing boundry has to be parallel to the upper opening boundary extending from the May99 high at 11131 to the record high in Jan00 at 11750. If that is the case, we are not yet very close to that lower boundary, which by an eyball view of the chart looks to be currently in the 10,000 area. Absent the parallel criteria, the lower boundary must be determined by something else, such as the series of higher lows following the major low of 9732 in March. The first significant higher low in April would have given us a lower boundary that was violated in a small way the first few days in May, and significantly on May10, at which point we should have declared the pattern broken to the downside. Instead, we can use the May10 low of 10292 to redefine the boundary, and that leads to the 10400 level of last week. It looks like we bounced off it a few times before we broke down on May25, where Paul raised the flag saying the diamond was complete and breaking down. We did actually made a significant lower low for the first time since January, but does that mean the diamond is broken, or is it that we just haven't yet found the right way to define the boundary? Without some independent criteria to say where the boundary is, we won't know. I'm thinking that if parallel sides is not the criteria, then the fork pattern I mentioned in the link in my earlier message might be it, and we are now close, but even if we break that we might argue for parallel sides as a last resort. Bottom line, unless someone has a solid criteria for defining the boundary I don't think we can say it is violated until we at least go past parallel, down around 10,000 in the near term and rising with time. Just thinking out loud. Comments are certainly welcome. Dan