Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Carl R. who wrote (5612)	2/17/1999 11:32:00 PM
From: Ed Perry	Read Replies (2) \| Respond to of 17679

Some traditional TA observations. From 1/26 through 2/11, there appears to have formed a high level consolidation triangle. A triangle can be reliable resting patterns in a defined trend movement. Basically, absent any outside shock, it is a successive winding down of competitive bull and bear forces. One common characteristic which often occurs, is a false move shakeout in a direction contra to the primary stock trend. The tip-off to the false move is the lack of volume follow through in the direction of the contra move. Volume on the three days decline 2/15 to 2/18 has been pretty anemic relative to the price volatility. Maybe this time the pattern will work. Incidentally, that "maybe" tells the whole story of TA. While it can give probabilistic opinion, at other times it fails completely. However, knowing that it represents a possible guideline with an interpretation, is where the value of TA applies - but not with 100% assurance. This range of probability through failure is the art form part of TA application. Ed Perry