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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jon K. who wrote (2002)	12/16/1998 12:21:00 AM
From: Moominoid	Read Replies (1) \| Respond to of 99985

LG says he expects the market to go up until the Dow hits the trend line (which is drawn as a line resting on the upper price fluctuations since the last top - ie a line tangent to the chart). Then he expects it to bounce back until it hits the 50 and 200 day moving averages at which point it might consolidate a bit. However, if it breaks above the existing trendline all bets are off. Often previous consolidation/resistance areas on the way up become congestion/support areas for the price on the way down. That's the bull flag stuff. A bull flag is a short down trend within a major advance. On charts that include daily highs and lows it looks like a sloping down rectangular "flag". Does this make sense to you? I really think there is no short-cut but to first learn some standard TA terms. There are plenty of good books and websites. This stuff is the most basic "classic TA". David

To: Jon K. who wrote (2002)	12/16/1998 7:41:00 AM
From: HairBall	Respond to of 99985

Jon K: I really do not know how to say it any more simple, but I will try. I expect the DJI will move up further tomorrow, but it will find resistance at the trend line described. Then if that trend line holds the DJI will head back down finding and testing support in the areas described. My analysis is not going to tell you exactly how high it will go and exactly how low it will go. But I gave you resistance areas to watch and support areas to watch with an expected out come. You have got to do the rest. If you want exact calls on every move, I can not give you that, sorry. I personally do not know anyone that can. But close has worked well for me for years. You have got to watch the price action for yourself and make your own judgements. Marry this post up with the first and see if you can put the two together. Regards, LG PS: My original post was a pretty basic description. I will not break it down to this level very often...