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

To: Cube who wrote (17560)	5/26/1998 12:42:00 AM
From: Doug R	Read Replies (1) \| Respond to of 79258

Cube, BMC signaled on Friday. GFI is a possible "multi-signaller" in the respect that it's a triple bottom with volume verification on Friday so it may just decide to go from here rather than make a new post-gap low. This is the first type of multiple signal. IMNT had a failed signal on 5/7. The signal that it is currently working on was given on 5/18. That signal has not failed but it has also not yet produced. One other bit of PGDCEB detail that you may not have been made aware of is signal history. There are many cats that elicit more than one signal, ie they signal once, react or not to the signal and continue down to make another new low on qualifying volume. The avg. successful signal yields a 15 to 20% return. A stock can have a successful signal and then resume downward to another new signal day which, by the rules, is lower than the previous signal day. There are stocks that do this repeatedly. There are others for which the first signal day is THE bottom. For stocks with a successive series of signals, their history of success or failure should be taken into account but that does not necessarily mean that a prior failed signal will lead to another failure. It just means that it might. This is why the stoploss at one or two ticks below the signal day low is an important part of the overall PGDCEB strategy. IMNT is an example of the 2nd type of multiple signal in that it has a failed signal in its history. A stock with more than one failed signal should be passed over in favor of another stock with no failures in its history. See, it's really very simple. Doug R