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Strategies & Market Trends : Gorilla and King Portfolio candidates - Moderated -- Ignore unavailable to you. Want to Upgrade?

To: Apollo who wrote (704)	2/5/2004 5:06:46 PM
From: Vegas	Read Replies (1) \| Respond to of 2955

How does one know whether that is a buy or sell signal? flip a coin? Seriously you would have to use a confirmation indicator that is tailored to your own risk tolerance. An example could be, trades below the 50 dma for 3 consecutive days then its a confirmed breach and would be a sell. Conversely one could use a similar approach and say if a stock goes below the 50dma intraday but closes above it then its a bounce not a breach. You really have to mess around with several indicators and confirmation signals to come up with system you feel comfortable with. For me I am usually satisfied to buy a stock that dips to its 50 dma as long as (especially if) its overall trend is up. Which ARMHY seems to be. If you look at the one year chart you can see that every time it hit its 50dma it bounced to a new high. disclaimer - These are just simple examples and opinions not a recommendation to buy or sell securities! Have a day.