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

To: Doug R who wrote (10600)	1/15/1998 10:17:00 PM
From: Dave H	Read Replies (2) \| Respond to of 79296

Doug, MRK possibly recycled the setup. It may not be a requirement for the day before a recycled setup begins to close lower than 4 days previous. If that is the case (I've seen it happen several times), MRK would be on day 8 of the countdown with the intersection on 12/12. I've studied MRK and the sequential chapter some more, and I've come to the conclusion that the setup you indicated isn't valid since there was no price flip beforehand, which makes the setup you pointed out connected to the first one in terms of the same supply/demand dynamic (24 consecutive close-above-4-days-ago-close days [11/14/97 - 12/23/97]). I believe you need a price flip (ie, a close equal to or less than four days prior) before you can start looking for recycles. -dave