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Strategies & Market Trends : Technical Analysis With Charts -- Ignore unavailable to you. Want to Upgrade?

To: Ron who wrote (1435)	11/28/2005 12:18:20 PM
From: MACD X	Respond to of 6865

RON YOU ARE AGAIN CORRECT stockcharts.com[g,a]dacayyay[df][pd20,1!d20,2][vc60][iUb14!La12,26,9!Lc20][J61304400,Y]&pref=G The chart above is not of the vix but is of the vxo which relates to the S$P as where the vix relates to option traded on the nazdaq. I would show you a fancy chart of the vix but I dont have one so the one of the vxo will have to do. But there meaning is the same, it is a measure of sentiment amount options traders. I drew this pinwheel up some time ago and took pain in getting the lines accurate. Even though,it is tough to get the lines exactly right on this type of chart but it is close. This chart only has value if the last bottom was indeed the bottom on the vix, which I believe it was, and we now have formed a double bottom. If this is correct this chart has the potential of being the road map for volitility to follow on the way up.. Using this chart and T theroy one should be able to plot where volitilitly will likely rise and fall. Because of the difficultly in creating this chart I do not want to write on it or create Ts on it, but if you understand T theroy you can do it yourself. It is following the script so far. When viewing this chart notice how it entered the center using two lines that funneled down to the center. I believe it will also use one or two line as it exits the center. The accuracy of these line then become of importance as we leave the center. I believe the lines exiting are slightly off and should be more up sloping but maybe not. We should be able to get a better feel for this as time goes on. Now that we have tested the bottom line as support we should lift off to seach out the upper line. The right side of the chart will likely mirror the left side so you can see that it is time for volitility to rise. You can put this chart in favorites on you computer and watch in anytime you wish. It is not an updating chart so you will have to adjust the date to get the correct view. The chart below is a blown up view of the same chart shorter time frame. stockcharts.com[g,a]dacayyay[dd][pd20,1!d20,2][vc60][iUb14!La12,26,9!Lc20][J61304400,Y]&pref=G