Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Shread who wrote (28304)	8/24/2000 12:40:34 PM
From: Robert Graham	Read Replies (1) \| Respond to of 42787

Converging lines is a point of strong resistance at its apex, particularly in an upward wedge formation. Crowd expectation is for wedge to resolve downward. Now if there is very strong underlying buying interest, as with any point of resistance, price will breach it. And when price moves past strong resistance, this usually results in a good, strong thrusting move. Indications as to buying interest can be found from the price action on the charts. But some information is lost after the fact instead of observing as it is happening. So if some are calling for an upside breakout, there has to be very bullish indications in price behavior, or perhaps in some other leading indications to be found in the market that the trader finds to have relevance and timeliness. I personally go by price action of the instrument in question. And if this specific formation were to be invalidated in this manner, I would anticipate an unusually strong push up on the chart. I must say that I usually see this from time to time on intraday charts, and rarely on daily charts. The daily chart usually turns out to be a stock with relatively low float or perhaps low float compared to its turnover. FWIW. Bob Graham PS: This is one way I identify the validation of resistance on the chart. One way is to see price bounce off. Another is to see a thrusting bar past that resistance. Then there are thos piercing tests of resistance that sometimes can be misleading.

To: Paul Shread who wrote (28304)	8/24/2000 1:01:27 PM
From: James Strauss	Respond to of 42787

How do you explain the rally's converging boundary lines? Paul: What I see is a multi month Symmetrical Triangle on the Nasdaq that appears to be resolving to the upside... The top line is in the 4023 area... We are currently above that... The rising lows suggest a reduction of fear as investors are willing to hold at higher and higher support lines... The low VIX readings shows that volatility is not an issue right now... I like low VIX readings... It means that my money won't be hostage to those painful whipsaws... Investors like markets that are somewhat predictable... That's what we have now... So, I'm betting that we move higher in the days and weeks to come... bigcharts.com Jim