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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: TobaccoMan who wrote (444)	9/16/1998 10:30:00 PM
From: LastShadow	Respond to of 43080

Sorry Tobaccoman I seem to be missing more and more questions lately. In compression I am generally talking about a reduced spread on the daily charts (not intraday - although its a similar read). These take every shape from ascending to descending triangles, pennants of varying shapes, all pointing to some conclusion. Now, although most chart technicians will swear by or at some logic that says if the stocks was declining beforethe ascending triangle formed, or if it was rising before the pennant compression, its means....something or other. I've seen enought to believe that the change could go either way, but is less dependent on the pre-formation trend than the shape of the triangle. What it generally tells me is that theere is going to be a major movement. Up, down or maybe both, usually with gaps one way or the other. Seeing the pennat makes me look at the stock and the sector and business and decide it it looks to be a major move coming - this is one of the few cases that I have seen volume come in to play - greater volume during compression almost always means a positive jump. Regardless, I wait for the move to start before entering. It usually takes a gap play, and will be a multiday hold (long or short) once it starts moving. One can try to out guess it and go long early, butI wouldn't suggest shorting early - for that one should always waot for the move to start. more in next post. ls