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

To: Magnatizer who wrote (13328)	3/14/1998 9:38:00 PM
From: Doug R	Read Replies (1) \| Respond to of 79279

David, One possible exception to "no buy on downturn of any indicator" would be intraday anticipation of a technical breakout. Remember, if a 3 day RSI puts in a probable bottom of an IH&S right shoulder on Mon., the neckline would already be in place. Now on Tue (say a significant amount of volume started the price up), if you can be relatively certain that the stock's activity will lead to a close that effects a break above the neckline, you would buy on Tue. even though Mon. would have produced a downward move in the 3 day RSI. A good strategy would be to buy 1/2 the position late (but not too late) Tue and hold off on the other half for closing verification that the close will be strong enough to pop the 3 day RSI (pre-entering a few different closing prices into your data should let you know a minimum close in advance if you want to go through all that but you get a feel for it after a while). Then (since the price just might pull down a few percent sometime on Wed as well) you would be in a position to quibble over 1/8 or two if the 3 day said buy. You would also be in a minimal loss position to exit Wed AM immediately if the close went against you. For this type of strategy to work best, it should be used with down trending IH&S necklines. Doug R