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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (3885)	7/23/2002 2:35:21 PM
From: augieboo	Read Replies (1) \| Respond to of 30712

Paul, you could be right -- at least so far as the target goes. The problem is that Murphy says measure the target from the breakdown point, but Bulkowski says measure it from the high point of the flag. The second problem is, neither of them says anything very clearly or precisely. (Makes Zeev's Hungarian seem simple by comparison!) I think what makes the most sense is to take the most logical parts from each guy, given the premise that a flag or pennant is a consolidation phase in the middle of a sharp move. Therefore, I propose the following: 1. Measure the height of the move to the beginning/top of the flag/pennant (in a down trend) or the beginning/bottom of the formation (in an up trend). 2. Subtract that number from the break down point (in a down trend) or add it to the break out point (in an up trend). This would give us the 820-840 target you spoke of, and make more sense than the poorly written explanations given by either Bulkowski or Murphy. How's that grab you?