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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Robert Graham who wrote (13528)	7/31/1998 9:52:00 PM
From: Robert Graham	Respond to of 42787

As a follow up my original post on intraday support and resistance, I first want to stress that it is important to relate what you see back to the interday charts. For most traders unless they are trading for one or two point profits, the daily charts are adequate in defining S&R. Also, on the intraday charts, I failed to mention that I use the 15-min time interval and at times to clarify a picture I may move to a 5-min time frame. This is adequate for the position trader that I am. I want to note here some additional examples of price formations that can provide support or resistance which may not be obvious to those less experienced. First, gaps that demonstrate strength in the price action of the stock can provide support to price movement and later resistance to prices that drop below, particularly the gaps made on strong volume. Its counterpart, elongated price bars, will often provide support at its top or at its middle. Peaks made in price that went up and as soon as it hit a resistance dropped quickly down will provide resistance at that price level once the stock makes it back up there again. The stronger the selloff, the more resistance the peak will provide. An area I have not looked into much but I have seen evidence of is characteristic price swings made by stock. I first came across this in a book about the PPS system that is based around price patterns. On an intraday basis there are important price points that are a focus of the market which can provide resistance, or if the price moves beyond them, will usually mean that the stock will continue its movement in the same direction. This is in a way like Bollinger Bands in how I find the stock to behave near them with the exception of yesterday's close. For those of you with "grass hopper" type of stocks, you may find your experience with BBs different than mine. The prices to watch include the following: yesterday's closing price which is considered the "value area" that the initial trading activity of the current day is compared to and tends to move toward unless new buying or selling interest has entered the picture, the open of the stock, the trading range established usually within the first hour's activity of the stock, yesterday's high and low, and the current day's high and low. There are situations that can magnify the importance of such a price point. For instance, if the open of the stock immediately led to a sell off, the open will tend to provide resistance to the stock if it were to move back up. There is much more work for me to do in this area, so I definitely have some more study to do here. While I am on this topic of important price points, there are even what I consider "attractors" which are price levels that once the stock price gets near will move toward it as through it is being drawn like a magnet to the price point. This is different that S&R which provide resistance to price movement. A 52-week high of a stock can behave in this way. I have seen this with WMT and other stocks where the stock is obviously losing its momentum rapidly and looks to be ready to turn down with the selling that has come in. However, it manages to get close enough to its 52-week high where a burst of new life comes to the stock to make it hit that high. It is an interesting sight. It is like a sudden hyperbolic launch of the price against "gravity". This usually happens when the price closes close enough to the 52-week high and the next day the price finds new energy in its attempt to make this target. I have found this to be usually never enough to overcome the deteriorating technicals of the stock, but many times the price comes VERY close or makes it to its 52-week high before reversing. So the 52-week high postponed the inevitable reversal of the stock in this way. Bob Graham

To: Robert Graham who wrote (13528)	8/1/1998 12:30:00 PM
From: Chris	Respond to of 42787

*** DJIA CHART UPDATED *** HIT THE REFRESH geocities.com

To: Robert Graham who wrote (13528)	8/1/1998 12:32:00 PM
From: Chris	Read Replies (1) \| Respond to of 42787

* DELL STATS * notice the falling trend strength. CSS III: Analysis of DELL COMPUTER (DELL) Reviewed on 7/31/98 ************************** High: 113.250 Low: 108.125 Close: 108.594 Change: -4.156 (-3.6860%) Volume Today: 14,010,300 shares. On 7/31/98, DELL COMPUTER closed down -4.1560 at 108.5940 on volume 7.41% below average. ************************ Summary: MOVING AVERAGES DELL COMPUTER closed at: 108.594 The close is currently Below its 5 period exponential moving average (109.3145). The close is currently Below its 9 period exponential moving average (108.9284). The close is currently Above its 13 period exponential moving average (108.0137). The close is currently Above its 21 period exponential moving average (105.4585). The close is currently Above its 50 period exponential moving average(97.1289). The close is currently Above its 200 period exponential moving average (71.8502). ******************************************* TREND STRENGTH: - this number represents the trend strength. Ideally, for going long, you want to see a rising value for each progressing day. A low reading (around 20's-40's) represents an oversold condition - this could mean that uptrend might just be starting. A high reading (around 80's-90's) represents an overbought condition - this could mean that uptrend might be limited/topping. Trend Strength for the Last 10 Days 43.5683 48.1264 49.9172 54.8712 59.7832 63.6686 71.1277 79.2246 84.8352 89.8698 90.2330 Super MACD Currently the MACD is bearish since it is trading below its signal line.The MACD crossed below its signal line 5 period(s) ago. Since the MACD crossed its moving average, DELL COMPUTER's price has increased 3.55% , and has ranged from a high of 113.750 to a low of 100.875. SUPER RELATIVE STRENGTH (Super RSI) This customized RSI shows overbought (above 80) and oversold (below 20) areas. The current value of the Super RSI is 53.28. The Super RSI can also be used with when it moves above and below the 60 trigger line. Currently is Below the 60 trigger line. PARABOLIC STOP AND REVERSE (SAR) An SAR Buy signal was generated today. If you are short, this might be a good place to exit. This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. Always use other indicators/forms of analysis to confirm.