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

To: Doo who wrote (41874)	2/1/2001 8:16:40 PM
From: Doo	Read Replies (1) \| Respond to of 42787

....and do we ignore the rising wedge breakdown on the NDX in favor of this 10 day rectangle? thanks, Jeff

To: Doo who wrote (41874)	2/1/2001 8:54:59 PM
From: donald sew	Respond to of 42787

Jeffery, >>>> 1. Why does your rectangle include a major overshot day? 2. Why is your rectangle only 10 trading days long, as of today's close as opposed to 3 weeks? 3. Why does your rectangle include a top which is not parallel to the lower line? 4. How reliable a formation have you found this type of rectangle to be in pre-saging a breakout to the upside in an uptrend that is but a few weeks old? <<<< They are very valid questions. Going back to 1998, during the late JULY - SEPT decline, there were 2 RECTANGLE PATTERNs. I realise that was during a decline, but mention it since its the most familiar to me. At that time I was really referring to them as STAIR-STEPs. The first one only lasted about a week before the selling intensified. I also noticed that I kept on drawing the upper-horizontal trendline often since I kept on getting overshoots. Another characteristic I noticed was that towards the end of the rectangle, in retrospect, there was a final overshoot that actually created a minor higher high prior which turn out to be the trigger before the selling resumed/intensified. During early JUNE 2000 and then again at the end of JUNE/early JULY there were examples of rectangles. I do admit that this possible rectangle is not as clear as back then. Hope this helps explains it.