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

To: Paul Shread who wrote (34723)	11/4/2000 7:23:15 PM
From: Dan Duchardt	Respond to of 42787

Paul, I got a tiny rising wedge breakout on the NDX at the high, but it pulled back in. Me too. My intraday charts are a bit weird since they have 1.5 hours of post and pre market in them, but as long as the defining points of a trendline are not on the same day, this extra time introduces only a minor difference from a line based on 6.5 hour days. My upper wedge line on a 5-minute chart is defined by 3275 on the 9:45 bar on 10/27, and 3326 on the 10:30 bar on 11/2, and that gives a near perfect touch at 3305 for the 2:15 bar on 10/31. 3333 was the break of the line I had drawn before updating the defining point to Nov 2. The revised line was at about 3339 when it cracked, but NDX only managed to hold above the line for about 40 minutes. After falling below, NDX held the upper part of the wedge and touched the line again at 12:00 and 12:15, and barely missed at 3343 at 2:05. My lower line is defined by 2956 at 2:20 on 10/26 and 3059 at 2:20 on 10/30, and that allows a slight penetration at about 12:10 on 10/30. The line could be pushed down if that point was used, but if it's going to break I'd rather see an earlier warning. At Friday's close I have the wedge boundaries at 3276 and 3347, only 71 points apart with NDX about 1/3 down from the upper line. The lines are converging about 40 points per day, so the apex should come Tuesday afternoon, if we don't have a clear break before then. In view of the number of touches I have on the upper line, I'm not inclined to raise it to the new high on Friday unless we crack the old line to the upside again. Dan