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Gold/Mining/Energy : Daytrading Canadian stocks in Realtime -- Ignore unavailable to you. Want to Upgrade?

To: Enjay!! who wrote (12578)	5/12/1999 2:27:00 PM
From: keith massey	Read Replies (3) \| Respond to of 62348

Enjay...50/50 chance... People buy at two place in the case of the ascending triangle. The first group will buy when it first crosses the resistance line. The second group will buy on a pull-back towards the resistance line (now support). Both groups will normally set stops just below this resistance (now support) level. If it breaks the support level the stops will get triggered and it was a false breakout (Whipsaw) and the stock will often fall fast. However people hot on shorting this stock will see a breakout through the resistance level as a great place to short the hell out of the stock. They will normally set there stops slightly higher than the first peak of the breakout through the resistance level. They know if they can push the stock back down through resistance they can cause a drop and cover for profit. As you can see there is a big war being fought in these zones. You can always see a volume spike in these areas and it usually breaks hard one way or the other. This is true on both day charts and year charts. If you use stops on these technical buys you will not get hurt to badly. When you are right the reward is more than worth the risk. Of course it didn't work that way for me with NCT lately but has worked like a charm on tons of other stocks. Best Regards KEITH