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

To: Chris who wrote (25045)	11/28/2001 9:09:36 PM
From: Paul Shread	Read Replies (1) \| Respond to of 52237

Chris, E&M are slightly contradictory on that - they say two things: 1) that the target is 100% of the ground gained within the wedge; and 2) that a rising wedge in a bear market means that the primary trend is still down. Well if the primary trend is still down, that implies lower lows, doesn't it? Every wedge has so far worked out that way, except for the 8-month wedge in MSFT that led to an 80% retrace. A measured bear move has seemed to work best with every other wedge in the bear market. The problem is, where do you measure the previous peak from on these to get the downside target? Probably more than you'd like to know...

To: Chris who wrote (25045)	11/28/2001 9:21:31 PM
From: Paul Shread	Read Replies (2) \| Respond to of 52237

From E&M: "Prices almost always fluctuate within the wedge's confines for at least two-thirds of the distance from the base to the apex; in many cases, they rise clear to the apex, and in some, they actually go a short distance beyond, pushing on out of the top in a last-gasp rally before collapsing. Once prices break out of the wedge downside, they usually waste little time before declining in earnest. The ensuing drop ordinarily retraces all of the ground gained within the wedge itself, and sometimes more."