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For IBMIf I were to draw trendlines connecting a Peak ( defined as a
high greater than the previous and following day and also the close
two days earlier and extend those lines) you will see that the highs
for each of the sessions of gap up days stopped at these line.
Breakaway gaps are continuation Patterns. However, I was looking at
some charts with Williams %R and find a divergence developing which
would seem to go along with the theory that the market is indeed
overbought and due for a pause over here. All the picks that I got for
Monday using my parameters have been short.
It is my opinion that we havent put in a final bottom yet which marks
the end of bear markets. We havent come close to breaking longer term
trend lines to suggest that we are in the early stages of a bull
market. FWIW.
Hope this helps.
\--- In amibroker@xxxx, "Dimitris Tsokakis" <TSOKAKIS@xxxx> wrote:
> CSCO trendlines give the exact picture of the UP or DOWN dilemma for
the next week(s).
> We shall see a breakout, in one way or another, since the triangle
formation came cautiously to an natural end.
> Market Direction indicators have already reached sharply to a first
peak [MACDBULL turned to 95% after two
> days at 96%] .
> We are in front of the most difficult T/A question, the continuation
of the bullish reaction.
> The market leaders have already announced the 3Q results.
> The trend makers did not leave any room for delayed action, when
they pushed some stocks to a +10% gap up.
> [Many Short positions were not that profitable the last ten days and
they were covered with significant losses]
> Now they need the trend followers to keep on buying higher and higher.
> Are these followers convinced to do that ?
> Medium volume traders who did not buy IBM from $65 [Sept 19] to $55
[Oct 9], 15 full trading sessions, are forced now to buy above $75
!!! It sounds a bit absurd...
> Is there any realistic perspective for such a delayed enthusiasm ?
> 3 IBM gap ups +8%, +7% and +10% in 5 trading days is a bullish shock
if you are out of the stock activities.
> T/A available tools for continuation are very few and not well
organised.
> Any ideas to improve this sensitive area ?
> Dimitris Tsokakis
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