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To: Henry J Costanzo who wrote (118270)	9/23/2011 5:26:43 PM
From: Lahcim Leinad	Read Replies (2) \| Respond to of 213182

A "channel" has no particular meaning or significance in Classic TA... Page 269, Technical Analysis of Stocks, by you know whom... ----------- Major Trend Channels We run into another difficulty when we try to draw return lines and construct channes for Major trends in an arithmetic chart. Owning to the marked tendency for prices to fluctuate in ever wider swings (both Intermediate and Minor) as they work upward in a Primary Bull Market, their channel grows progressively broader. The return line does not run parallel to the basic trendline (assuming that we have a good basic trendline to begin with) but diverges from it. Occasionally a stock produces a clear-cut Major channel pattern but the majority do not. Semi-logarithmic scaling will in many cases correct for the widening channel effect in Bull trends, but then we run into the opposite tendency in Primary Bear Markets and for that neither type of scaling will compensate. ------------- Now, don't ask me what that means. I ignored it. Yeah, read the book twice but also don't ask me if I truly understand it. (g)

To: Henry J Costanzo who wrote (118270)	9/27/2011 6:22:05 PM
From: Edward Boghosian	Respond to of 213182

mchjc:: After reading your comment that channel(s) have no significance in technical analysis, I looked into my copy of Technical Analysis of Stock Trends by Edwards and Magee and found dashed lines describing all sorts of "formation", "patterns" and on page 252 of the 4th edition, Figure 157, the authors specifically mention an up trend channel while referring to a company called Consolidated Vultee. It is chapter XIV, with heading, "Trendlines and Channels." A pattern, a formation like what you showed-or similar to it. Therefore, if they use it, and name it as such, it must be for real. Anyway, I started to reread some of the material.