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Strategies & Market Trends : Groundhog Day -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (2737)	4/30/2002 2:52:59 PM
From: Jorj X Mckie	Respond to of 6346

Grace, I think I get it. I always sucked at word problems though. One of the things rules that I have in this market right now is "support is meant to be broken". In the mania, I had the opposite rule "resistance is meant to be broken". I believe that this correlates with your comment "If this persists long enough, supply is reduced significantly which means any uptick in marginal demand causes price to rise in a dramatic way.". Many of us on this thread use Point and Figure Charting. It is a very convenient way to visualize the places where total demand situations meet up with strong or constand marginal supply (or vice versa). That is why we pay attention to the triple tops and triple bottoms so much. Once the supply or demand is reduced significantly (breaking of the support or resistance), the move can be dramatic. P&Fers generally tend to think of stocks movement in supply and demand terms.