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To: ftth who wrote (51)	1/29/1998 11:13:00 PM
From: big run	Respond to of 237

hi dave wow! you are absolutely busy! ok...here is my take on breakouts... the initial breakout of price & volume usually comes from some type of news; earnings, analyst upgrades, etc... the herd mentality pushes people into this buying frenzy and attracts alot of attention. daytraders jump in and out of these situations adding to the volume. this is what they call a buying climax. the rate of change from the previous day cannot be sustained very long. eventually the volume starts to drop (everyone who wants to buy already has) and it's natural for the price to follow it. then the patient buyers can step up and buy at a cheaper price than through most of the rally. of course not all breakouts follow through. as far as indicators to work with breakouts i don't know of any. most of what i do is by actually looking at the charts. i use one scan to help find the active charts and then do alot of looking. i usually keep a list of charts that look like they're getting ready to pop and follow them through the day and am able to act accordingly. i have been playing with stochastics on volume and cumulative volumes and like how it looks. stiil needs work and as soon i come up with a conclusion on it i'll let you know. mike

To: ftth who wrote (51)	1/30/1998 6:48:00 AM
From: Tim Fierro	Read Replies (1) \| Respond to of 237

[Price-Volume Volatility]: Anyone ever seen historical testing of volume breakouts and the corresponding increase in price? Several indicators use a ratio of volume change and price change, in various combinations, to indicate the strength or driving force behind a price move. Directly or indirectly, these assume there is a linear relation between the volume change and the price change, only, intuitively, we know this is not the case. I think you may be talking about something I was reviewing yesterday and how to duplicate this in Q+ and in WOW. The item I was looking at was called the "Liquidity Ratio". Are you familiar with it? Let me find my notes.......Oh, here is the exact info; dailystocks.net It intrigued me because it is supposed to show how much volume is needed to move a stock. Their basis is for a month period. I suppose one could even create it in a weekly or 10 day format also to test results. I plan to play with this to see what it does and if it can have any bearing on price movements in advance of it actually happening. Is this similar to what you are thinking of? Tim

To: ftth who wrote (51)	1/30/1998 4:56:00 PM
From: ftth	Respond to of 237

[TA QUOTE OF THE DAY] "Technicians are often tempted to use one set of indicators to confirm another. We may decide to use the moving average convergence/divergence (Macd) to confirm a signal in stochastics or use momentum readings to confirm moving average models. Logic tells us that this form of diversification of indicators will enhance results, but too often the confirming indicator is just the original trading indicator repackaged, each using a theory similar to the other to measure market behavior. It is not unlike taking two wind direction readings rather than reading the wind direction and barometric pressure to predict tomorrow's weather. Thus, the enhancement we sought through diversification results in loss, and we are left wondering why our indicators don't seem to perform much better. " --Donald Dorsey