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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (11282)	7/11/1998 2:35:00 PM
From: LastShadow	Respond to of 120523

Using Weekly Charts: Weekly chart data can be extremely useful, particularly in swing or position trading. Although Point and Figure charting may give a similar answer, no charting program I know of allows you to overlay that information over the daily charts - for the simple reason that the time scale is not consistent. In swing trading one looks to find the Up and Down weeks. The Dates in parenthesis is an example bar chart using a weekly format for AAPL. Up Week: Both the high and low price of the week are above the high and low prices of the previous week ( in other words, the high is above the previous high and the low is above the previous low). (7/6-7/10/98) Down Week: Both the high price and low price of the week are below the previous week's high and low. (5/18 -5/22/98) Outside Week: the high price is above the preceding week's high and the low is below the preceding week's low. (10/10/97-10/17/97) Long-Range Week: The bar shape is determined after the fact in that the subsequent weeks are inside the range - ie, neither above or below, but one or more Inside Weeks. (4/10-4/17/98) Inside Week: The high is below the previous week's high and the low is above the previous week's low. Several inside weeks can occur before it becomes either an up or down week. The key is whether it is trading either above or below the limits of the Long Range Week. (the two weeks ending 4/24 and 5/1 following the Long Range Week listed above). These types of formations occur on daily charts, but it is often more telling to observe the weekly chart history of a ticker and determine if particular weekly formations lead to up or down swings. In AAPL's case, Down weeks generally reverse after a Long Range week, rather than just an Up Week (see week ending 5/26 and 6/3. Also, as long as the weeks following a Long Range week isn't broken with a Down week where the low goes below the low of the Long Range week (see January 1 through current day), it is safe to hold. For subscribers, this article and The New DOW Barometer Trading Strategy (with Entry and Exit rules)is posted in my section at marketgems.com - the new Watch List is also posted there. lastshadow