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Strategies & Market Trends : Lizard King's Trading Swamp -- Ignore unavailable to you. Want to Upgrade?

To: David Russell Coburn II who wrote (2412)	10/26/1997 2:41:00 PM
From: TATRADER	Respond to of 7396

David, targets are arrived at by measuring a stock pattern and then multiplying by a Fibonacci ratio, or by simply adding the distance to the breakout point....Patterns that you measure are Head and Shoulders tops and bottoms, ascending or descending triangles, symmetrical triangles, rectangles, double bottoms, etc...Sometimes a stock moves upward in a flag pole patttern....After you see the pole, usually a flag will form, a time of consolidation or structured profit taking....The flag should go down....If it goes up, I abandon ship immediately, because that smacks of distribution...Further, many times a stock in a downward flag formation, will spike again from the consolidation point, the same distance as the last flag pole....If you are chart reader like me, I will study the past on the stock, going back as much as 5 years, to see if there are any similar patterns, and measure the height of those price spikes... As far as overhead goes, there is no overhead if the stock consolidates and then attacks again an all-time high...Makes sense doesn't it.....However, on NASDAQ stocks only, if you are not at an all-time high, you will have to calculate overhead, because if you don't you will watch your profits eroded as others take profits and allow you to hold the bag at lower levels..Calculating overhead will also help you to determine when a stock is finally going to break through a high resistance or support area...I add up shares in highly concentrated areas and multiply by a pre-determined figure, to guesstimate on firepower needed....I keep that figure to myself at this point...Got to have some edge on you guys.... Regards, Mark