I want to give cre
Attachment 690dit to Limit5bass for pointing me to the paperback book called "Stikky Stock Charts". It is from my interpretations in reading that excellent reference that when a trend line makes it's third touch of the stock price then we should normally expect to see a direction in price. In the following example I am showing that today's high did create the third touch in the upper trend line, so we would normally expect the price to fall. However, we are advised to await tomorrow's action for a confirmation. It could be (due to extenuating circumstances, for example, great auto numbers announced), that we will break out above that upper trend line and establish yet another upper trend............. and demonstrate why we just would not automatically sell when we have touched that upper trend line. Then again, if the price direction tomorrow takes a downward movement, then we would be advised to exercise our sell strategy................... and await the time when the price makes another touch of the lower trend line.
I think I have that analysis right. If not, then please do not blame the bass man. ( not sure what is happening, bu I suspect something is wrong with my attachment action. we'll soon know
PS. Edit.........oh well, you'll just have to figure it out.