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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: TIK who wrote (24456)	12/20/1998 3:38:00 PM
From: Doug R	Respond to of 79273

TIK, I'll take the second question first. There's a range of actions that can be taken depending on the particular activity. If the price hangs around the low all day and the volume requirement is met late in the day, it's best to wait for the next day to monitor early activity with a bias toward buying early so the price doesn't start levitating without you. Then there are the days where the volume requirement will obviously be met and the low on the signal day was fleeting. In this case it is best to buy on the signal day anticipating a strong move up the next day. 2 or 3 separate buys can be worked in at different prices to try to take advantage of any intraday, post-signal dips or to avg. up if strength in price is shown consistently. Then there are the days when volume is good and it is not entirely clear that the price requirement will be met. When this occurs, the stock will not show that it will close with the bid off the low until the very end of trading. PSFT on 12/14 was a great example of this. It ended up closing on the low and therefore did not signal. These are the trickiest ones to enter ON the signal day but if it starts ticking up in the final minutes it's possible to get in at the last second. If you miss it, there's always the next day to try for a low entry as long as the low isn't lower than the signal day. Doug R