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

To: jkc who wrote (9337)	6/17/2001 6:13:12 AM
From: donald sew	Read Replies (2) \| Respond to of 52237

Joan, >>>>> The TA book I was reading said such a formation indicates increased strength. In other words, the seeming downtrend is in reality hiding a newer uptrend being created. The depth of the red lines in March/April are more severe even though the prices are in the same area. (for example, when qqq was trading at the same price in late March as they are now, the red lines were longer). <<<<< What you say is correct, and if you go back to my index update during that time, thats one of the reasons I went bullish since the histogram was showing a positive divergence. Now take a look at the 2 smaller peaks in early MAY and late MAY. The opposite is occuring where the histogram(red lines) on the late MAY peak only got as high as the early MAY peak while the QQQ went higher. Thats a negative divergence, using the same principles you mentioned from the TA book you are reading, but in reverse, which implies weakness. Please keep in mind that I do not use only one indicator, but several. At times as many as 10. Lets say hypothetically that 1 indicator is giving a bullish hint, which the other 9 are bearish - I have to go with the 9 bearish. Im a firm believer that there is no 1 indicator that predict the market since the market is SO dynamic. I guess not too many would agree with me since I consistently here so many analysts putting strong emphasis on only one indicator.