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

To: Terry Mitchell who wrote (7486)	1/4/1998 4:17:00 PM
From: David R. Evans	Read Replies (1) \| Respond to of 12039

Hello Terry, It good to have you aboard...... Yes, FIB and GANN are similar.... That's what I used when I was using WOW before I got MSWIN. Another thing you can do to find support & Resistance is the following: Get a few years of data on the screen and draw a trend line across the major highs and lows. When you draw them make sure they go all the way across the chart from left to right. This works well with a stock that has been on both sides of the mountain like say IBM. Let's try this: Put up a chart of IBM on your screen. If you can, put up at least 8 years of data at one time. Now try this. Start at the extreme left of the screen and draw Horizontal trend lines across the chart based on the first significant highs and lows you see starting from the left. I'm drawing my first line at 47.23. Why, because of that significant low at the beginning of 1990. My next line is at 48.37 because of the next significant low I see on the screen. Next is at 55.22 because of a significant high and after that is another high in 1990 at 60.92.Lets finish out this part of the exercise by drawing a line at 70.04 for that significant high at the first quarter of 1991. Now look to the right of the chart. Did any of these lines hold true? You can continue through all the years on your own but I'm sure you get the point. You can do this with most charting packages and using various amounts of data. If you only have two years of data give it a try and see what you get. Remember, the highs and lows you see on the left side of the mountain will be seen again on the right side of the mountain.. Dave Evans