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

To: U Up U Down who wrote (29116)	5/5/1999 11:19:00 AM
From: Ceez	Read Replies (2) \| Respond to of 79177

George, I believe he is referring to Top Shorts. IL violators (technique explained at his seminar) tend to drop. I shorted ASTN two days ago, so far so good. Good luck Ceez

To: U Up U Down who wrote (29116)	5/5/1999 11:24:00 AM
From: Doug R	Read Replies (4) \| Respond to of 79177

George, ASTN: There's a chart activity that I have identified which indicates when a stock has gone too far too fast. ASTN fell into that category on Thursday. It's an algorithm, or template, that is preset and when a chart falls into it, it's definitely NOT a buy. This specific chart activity sets up what I call the Impossible Line (IL). The main point of my work with it is...NEVER buy a stock that's over the IL. Ancillary points would then be: Sell it if you own it... Short it if you don't... There's a support line that comes with the IL. You'll see references to the ACT whenever there's discussion here about the IL. The ACT is actually a line that activates the IL and once the reaction to IL violation sets in you can expect the stock to return to its ACT. Once at the ACT, if it IS actually used as support (there are no guarantees here) the stock will experience what is known as reciprocal retracement. This is a bounce off the ACT that is equal, on a % basis, to the size of the fall to the ACT. For example if an IL violator falls from 10 to 6 (40% of 10), it will bounce to 8 7/16 (40% of 6). Once it is known that an IL has been established and violated, you can then trade the stock in the proper direction at the proper times for a known result. Remember, in TA there are no good companies, great companies or lousy companies. Just charts and the stuff they tell you. The shorts will say one thing about a company. The longs will defend the company. The chart will do what it's going to do and shorts and longs can argue until they're blue in the face. Doug R