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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL) -- Ignore unavailable to you. Want to Upgrade?

To: David McCleary who wrote (20942)	11/10/1997 10:06:00 AM
From: topwright	Respond to of 41046

David, as you correctly stated, interpretation and implementation of charting and T/A has as many variables as Carter has liver pills. I do want to point something out that may explain my use of the $2 low in late July as my starting point rather then your $1.50 low in August. If you look backwards on the chart as to the historical pricing that lead up to decline in August, you can almost visually draw a line down a graduated slope, if you then drew a line up from the bottom at $1.50 they would intersect at the $2 level. I also used the $2 point because it represents a truer picture, notice the short basing at $2.00 after coming out of the temporary drop to $1.50. This then would represent a smoothing effect in the chart and give it a more realistic trending pattern and thereby represent a more meaningful pattern. Now what is interesting is that whether you use your points of reference or mine, the only differnce is the degree of angle as you you extend out the line to present and beyond. But they both disect the present day at about the same $5 level, coincidenza? I tend to find that using anything that will smooth out a chart, especailly in a highly volatile stock, such as FTEL will give more reliable predictive analysis. In countering your reply, I would like to differ in your statement regarding the 50 Day moving average, whereby you stated that we broke down through the 50 day moving average last Thursday, wrong. The 50 day moving average was just under $4 last Thursday and the lowest we traded was $4.50, well above that point. As for interpretation, what ever works for you, but I would highly suggest reveiwing your data regarding the 50 day moving average then rethink your strategies. RB