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To: Dan Duchardt who wrote (377)	10/6/2000 1:26:24 PM
From: TraderAlan	Respond to of 8925

Dan, Your comments support the wisdom of developing alternate strategies for a given pattern, one for each direction. The inability of price to break out in the 1st direction doesn't necessarily trigger an entry signal in the opposite one. That must be guided by its own rules and reward: risk profile. Classic example: a descending triangle "succeeds" when it breaks the horizontal low. But a pattern failure setup doesn't signal until price breaks out above the trendline formed by the declining highs. I think pattern failure supports the power of TA rather than undermines it. It says that every jumble of price bars or candlesticks require (1) an opportunity for profit and (2) a strategy that capitalizes on it. Alan