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

To: Chris who wrote (31655)	3/7/2002 9:32:10 AM
From: Lee Lichterman III	Read Replies (2) \| Respond to of 52237

Interesting comments regarding indicators. Personally, I find that ADX doesn't become useful until the move has either started or until a move has moved so far that ADX is topping out. You pointed to GE as an example. I will use the same. From my chart at marketswing.com One can see that ADX was clearly topping out in early December, to go along with that was a typical mini double bottom in fast stochastic. ( ADX is the Yellow line and fast stoch is the heavier white line in the bottom window) That was my clue to jump in and see if the fork would hold for a rally. Falling ADX hinted that the move would be range bound thus when I got a over bought signal then a sell signal, I exited. The drop came as expected and though ADX dropped most of the time, it moved back up near the end as GE did a throw over double bottom and then put in a bullish candle stick pattern just as I was getting a weekly buy signal. ADX turned and thus it was once again a good buy. Momentum traders on the other hand would have been waiting to see if it could break above the previous high and would have been whip sawed as it peaked over the lines in Mid February but a falling ADX would have been the clue that all this was was a corrective bounce and thus it was only a scalp. It then pulled back but signalled a short term over sold and the ADX started moving up again. This was the signal to add to any longs as ADX is now implying that this may be a strong trend in the making and worth riding or adding on pullbacks. I am no e-waver but it appears one could argue that from the Late January low to early Feb was wave 1, the retrace was wave 2 and we are just now finishing up a wave 3 that was made up of a mini ABC. A wave 4 pullback should come soon before the last wave 5 push up. Disclaimer - I am long GE right now though I plan on hedging out again soon for a short term pullback. Interesting post you found on the EMC thread. Strange to look back that far. We did find a bottom shortly there after for a bounce though my target was slightly too high. We did drop again to a new low and FLEX and MU, QLGC etc did finally capitulate. We certainly did bottom in September which set up this recent action. Sometimes the longer term crystal balll works I guess. Strange that that post was found making fun of "voodoo TA". -gggg- I see the other Larry is back on SI again after quitting 50 times and swearing to never return and is hitting the E-wave and Zeevs thread heavy yesterday. This must be a signal of something. At least he seemed to be in a better mood on those threads..... -ggg- Good Luck, Lee