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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (7880)	8/19/1998 9:56:00 PM
From: Magnatizer	Read Replies (3) \| Respond to of 29382

THUD David hits the floor again. Luckily he was prepared with a cold one waiting at his feet. man, first doug spits out some FA the other day then I come over here and Sergio is working on some TA. Must be in the stars or something ht david

To: Sergio H who wrote (7880)	8/19/1998 10:02:00 PM
From: James Wright	Read Replies (2) \| Respond to of 29382

I recognize that one way to determine support levels is to use moving averages. I find that a better way for me is to look at whether a stock has tested and bounced off a consistent, flat line low. Thus, when CADE broke below its long term support level of 3 1/4, I sold. Sometimes support is defined by the lows on a sloping line during an upward or downward trend. AIRM broke its upward sloping support a month or so ago, and so I sold around 4 1/2. Time has proved me right (at least so far) in having sold both stocks when I did. I have used the same approach to short stocks that break below their support levels -- for example, WAVO and DSET. Finally, when a stock breaks below its support level, that support level then becomes resistance which the stock typically will have a hard time climbing back above. These are simple concepts that have proven themselves over time. Certainly, however, they are not the only valid method for analyzing support and resistance levels. -- Jim