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

To: Michael Watkins who wrote (5269)	4/7/2001 10:34:33 AM
From: Trading Machine	Read Replies (2) \| Respond to of 52237

Michael, you have provided us with some nice charts, thanks. I was just reviewing Bulkowski's Chart Patterns Encyclopedia, and he says with reference to triangles, "Prices trend down then form lower highs and higher lows following two sloping trend lines that eventually intersect. The breakout is downward." So if the lines on your charts are correct and it is a triangle, then I would suggest that probabilities are that it will break to the down side and not up. Bulkowski has the failure rate at 2% and the average decline at 19% with the most likely decline at 10%. He also found that triangles with high volume show larger losses! It appears from your charts that we have an overall decline in volume during the period of the triangle. Having said all this, I don't know how applicable all this is to short term charts (your 15 minute chart), but for the sake of conversation I was just assuming that it is. gg Another factor that I keep looking at is the fact that the DOW broke a diamond pattern to the down side and it owes me a trip to 8448, in the longer term, culminating on or before April 29. I am neither Bear nor Bull, and I don't believe in "buy and hold" so I have no vested interest in having the market move in either direction. Lately, I only play the short term up stuff with end of day trades. Although I hope for everyone's sake that the market does turn into an uptrend, it doesn't look probable in the near term. Just a thought, keep up the nice charts. Paul Kellam