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Microcap & Penny Stocks : AMERICAN BIOMED, Minimally Invasive Technology (ABMI) -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey L. Henken who wrote (841)	5/10/1998 6:16:00 PM
From: Bill Fortune III	Read Replies (3) \| Respond to of 2887

To ABMIers, some charts and my opinion of them. The first chart shows ABMI in two parts the upper part shows the "Bollinger Band" type of envelope: BOLLINGER BANDS are a type of envelope (or trading band) plotted at standard deviation levels above and below a moving average. Because standard deviation measures volatility, the bands widen during volatile markets and contract during calmer periods. Mr. Bollinger notes the following characteristics of Bollinger Bands: Sharp price changes tend to occur after the bands tighten, after volatility lessens. When prices move outside the bands, a continuation of the current trend is implied. Bottoms and tops made outside the bands followed by bottoms and tops made inside the bands call for reversals in the trend. A move that originates at one band tends to go all the way to the other band. This observation is useful when projecting price targets. Bollinger Bands are displayed in two bands which are plotted at standard deviation levels above and below a moving average. Bollinger Bands provide a view of the current trading range. They can be used with other indicators to determine when it's time to buy or sell. Only in my opinion. You will notice that the bands are quite wide (should not be entirely susceptible to sharp price changes) and if the price next week breaks through the top band and holds it should continue upwards. The lower part of the chart shows the "Momentum Indicator" THE MOMENTUM INDICATOR measures the amount that a security's price has changed over a given time span. The Momentum indicator displays the rate of change as a ratio. The Momentum indicator can be used as a trend-following oscillator or as a leading indicator. Used as a trend-following oscillator, technical analysts typically buy when the indicator bottoms and turns up and sell when the indicator peaks and turns down. If the Momentum indicator reaches extremely high values and then turns down, you should assume prices will probably go still higher. The method of using the Momentum Indicator as a leading indicator assumes that market tops are typically identified by a rapid price increase and market bottoms end with price declines. As the market peaks the Momentum indicator will climb sharply and then fall off-diverging from the continued upward or sideways movement of the price. Similarly, at a market bottom, Momentum will drop sharply and then begin to climb well ahead of prices. Only in my opinion. Based on shows since 4/4/98 and depending on what happens the first part of next week it should start climbing again. chart4.bigcharts.com On the second chart in the lower half it shows the MACD or (Moving Average Convergence/Divergence indicator) The MACD (Moving Average Convergence/Divergence) indicator shows the relationship between two moving averages of prices. MACD is derived by dividing one moving average by another. It is based on the point spread difference between two exponential moving averages (EMA) of the closing price. The basic MACD trading rule is to sell when the MACD falls below its signal line and to buy when the MACD rises above its signal line. The MACD is most effective in wide-swinging trading markets. When the MACD rises dramatically, it is likely that the security's price is overextending and will soon return to more realistic levels. A bearish divergence occurs when the MACD is making new lows while prices fail to reach new lows. A bullish divergence occurs when the MACD is making new highs while prices fail to reach new highs. These divergences are most significant when they occur at relatively overbought/oversold levels. Here again and only in my opinion. ABMI is holding in the new highs area while failing to reach news, this tends to lead to the conclusion that BULLISH divergence is occurring. Both the MACD(12,26) red and MACD(9) blue lines are on the upward trend. chart4.bigcharts.com The last chart in the lower section shows the FAST Stochastic Oscillator. The Stochastic Oscillator compares where a security's price closed relative to its price range over a given time period. As with moving averages, the sensitivity increases with shorter time spans. Two or more stochastics may be used with different time spans on a single chart to develop "cross-over" signals. This method is used to spot trend reversals with fairly good accuracy. Many systems that are developed use the stochastics as a timing indicator for signals of market reversal. The stochastic oscillator compares where a security's price has closed relative to its price range over a specifically identified period of time. George Lane, who developed this indicator, theorized that in an upwardly trending market, prices tend to close near their high; and during a downward trending market, prices tend to close near their low. Further, as an upward trend matures, price tends to close further away from its high; and as a downward trend matures, price tends to close away from its low. The stochastic indicator attempts to determine when prices start to cluster around their low of the day for an uptrending market, and when the tend to cluster around their high in a downtrending market. Lane's theory is these are the conditions which indicate a trend reversal is beginning to occur. The stochastic indicator is plotted as two lines. They are the %D line and the %K line. The stochastic is plotted on a chart with values ranging from 0 to 100. Readings above 80 are strong and indicate that price is closing near its high. Readings below 20 are strong and indicate that price is closing near its low. Ordinarily, the %K line will change direction before the %D line. However, when the %D line changes direction prior to the %K line, a slow and steady reversal is usually indicated. When both %K and %D lines change direction, and the faster %K line subsequently changes direction to retest a crossing of the %D line, but doesn't cross it, this is a good confirmation of the stability of the prior reversal. Many times, when the %K or %D lines begin to flatten out, this is an indication that the trend will reverse during the next trading range. Here again and only in my opinion, ABMI shows signs of reversing direction to restart a upward movement. The faster %K has changed direction and should retest and hopefully re-cross the %D line. chart4.bigcharts.com Over the year's chart have proved to be very useful in my investing. About 80% of the time they prove themselves to very accurate. The above four scenario's are but only a few of those that lead me to the conclusion the ABMI should be testing and breaking the $1.00 mark. I would be happy and honored to hear any comments and thoughts from those who look at the charts. ABMI, Long, Long, Long, etc. Happy trading next week. Bill Fortune III