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

To: Ceez who wrote (12841)	2/27/1998 3:25:00 AM
From: Doug R	Read Replies (3) \| Respond to of 79273

Ceez, Your strategies should not be dictated by this thread. One thing that is important is to know your own style and within that style, develop your own strategy. The vast majority of stocks are liquid enough for any individual investor or trader that they should be considered as cash...not a commitment. I'm not saying you should cover PRTL and I'm not saying you should hang with your position in it. I'm saying you should have a plan that is your own whenever you initiate. Ivan S was at my last seminar and he is learning that it takes practice in order to arrive at the proper IL/ACT construction on some stocks. There are a few verifying chart factors that allow one to rule out any of several possibilities that occasionally occur in a chart. In the case of PRTL it comes down to verification by the fit between the IL and the immediate shortest term uptrend associated with B2. Using this verifier, the IL is currently 24 1/2. PRTL used the IL as support today. I have stated several times that this often occurs. I take use of the IL as support as another verification of validity. The ACT is still just over 20 so my personal rule would have me cover when the ACT is within 10% of the price I initiated my short position and the price is within 10% of the highest allowable ACT. In the case of PRTL, initiation at 26 would allow the ACT to come up to 23 5/8 and I would cover at a price of 26 when the ACT got to 23 5/8. Otherwise, if this did not occur, I would allow for a 15% loss which would cause me to cover at 29. As long as the ACT was below 23 5/8, I would remain short. Individual charts differ in the % between the IL and ACT values. This is an important consideration when shorting an IL violator. Personally, I prefer a 30% or greater range between the ACT and the IL. Doug R