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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Vendit™ who wrote (6744)	3/19/2005 11:50:42 AM
From: Walkingshadow	Read Replies (2) \| Respond to of 8752

Thanks Reid, I am not sure what to make of that....On that chart, the center tine looks like it intersects the end of the chart at about $34.60. But the end of the chart corresponds to a time point in the future that is only about a week or less away. I don't think QQQQ will trade down that far in such a short period of time.... that would require QQQQ to lose 5.2% in a week. Weekly changes in QQQQ are typically 2% or less. I tried to extrapolate the slope of that tine into the future. For that, you need to know the slope. The tine crossed the $36.39 level at about the beginning of March, or 3 weeks ago, and if you draw a vertical line from Friday's candle to the tine, that gives you a value of about $34.85 or so. That means the slope of the tine is - 0.51/week. So that center tine intersects the current closing price at about $34.85, but in 2 weeks it will intersect the current closing price at $33.83. I don't really understand the idea behind the forks, so maybe you or Gersh could explain this. Does the chart you drew imply that QQQQ must trade down to the center tine at some point? Or is that simply the absolute lower limit, and QQQQ will merely trade below the upper tine until the trend changes? If the latter, then what we are really talking about is a trendline formed by the upper tine. And, that trendline is decreasing by the same amount as the middle tine, or $0.51/week. So... I am confused. I guess the question I have is how this fork should be interpreted ?? T