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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: coaster who wrote (9255)	12/14/1997 6:44:00 PM
From: Dave H	Read Replies (2) \| Respond to of 79378

Gary, Confirmation is when RECY, after bouncing back through a line of support, again breaks through it even on intraday action. this would be confirmation since it is no longer treating that line as support. A good line to use could be the one Jim has mentioned as strong support at 6 1/4 -- watch RECY and see if intraday it makes below this support -- even if a trade goes through at 6 7/32 it has broken this support and that would be for a second time. If however, the lowest trade happens AT 6 1/4 but never falls lower, then this support line gets confirmed once again. You could also wait even after a second violation for the stock to actually close at or below the support line you are using...by then you will be able to see the downtrend in action. Again, I'm only throwing out a warning here, since support was violated, but just once. Early Confirmation is twice. Final comfirmation of the breakdown of the support line is a close under it. -dave