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Microcap & Penny Stocks : Cade Industries -- Ignore unavailable to you. Want to Upgrade?

To: Boyd Hinds who wrote (3303)	10/16/1998 3:44:00 PM
From: MechanicalMethod	Respond to of 3563

Boyd, Uptrends exist because supply dries up as price pulls back creating higher lows. Confirmation is breaking out above a high. Risk is reduced after that first break out. Ross noted this distinction and coined the term Ross Hook for subsequent b/o's of swing highs after a 123 bottom is in place. With Cade, a b/o above 3.00 confirms the 123b and sets up the pattern. The rule is to buy the break above an RH. There are tricks that get in earlier, such as buying the b/o above an intraday congestion, just below the RH, anticipating the run will take out the RH. The best entries occur during a retracement phase while anticipating the establishment of a higher low. Buying b/o's of previous days highs, downtrend lines, or congestion areas. Risk is determined by proximity to the previous low. The cheaper you buy, the more you make, until the pattern of higher lows inverts creating a 123 top. Osci