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tmurrey,
I've never read Gann's book. I'll have to see if I can find it in the
library.
Jim
-----Original Message-----
From: tmurrey
Sent: Saturday, May 17, 1997 2:56 PM
To: Jim Greening
Subject: Re: PAIR near bottom of channel
W. D. Gann explained that in his book 1912.
----------
> From: Jim Greening <JimGinVA@xxxxxxx>
> To: Guy Gordon <gordon@xxxxxxxxxxx>; MetaStock-List@xxxxxxxxxxxxx
> Subject: RE: PAIR near bottom of channel
> Date: Saturday, May 17, 1997 8:31 AM
>
> Guy,
> A friendly warning, I've been burnt in the past trading long
positions in
> down trend channels. I no longer trade long positions in down trend
channels.
> I've taking the advice that "The trend is your friend" to heart. I only
> trade channels in the direction of the trend and also like the trend I'm
> trading to be in the direction of the next longest trend. That is I'll
trade
> a short term up trend with a long position from the bottom to the top of
the
> channel. I'll either cover at the top of the channel or sell covered
calls if
> the intermediate term trend is also up. I will bottom fish on horizontal
> channels or down trend breakouts. For down trend channels, I will only
trade
> short positions from the top to the bottom of the channel.
> That doesn't necessarily mean I'm right, but it works for me <G>.
Best
> of luck if you do take the trade.
>
> Jim
>
> -----Original Message-----
> From: Guy Gordon
> Sent: Friday, May 16, 1997 3:22 PM
> To: MetaStock-List@xxxxxxxxxxxxx
> Subject: PAIR near bottom of channel
>
> PAIR fell 17% today when Soundview Financial said nasty things about
> Pairgain. Strangely enough, "SoundView analyst Chandan Sarkar said he
> has become more cautious on PairGain but has not changed the rating or
> earnings estimates. " =20
> See http://biz.yahoo.com/finance/97/05/16/adtn_pair_1.html
>
> PAIR had been rising steadily for two years until last October. Then
> it fell, went sideways, and climbed back to re-test the Oct high in
> January. It made a double top in February, and then started a
> downtrend channel. It has dropped from $42 to $17, and the PE is
> still a high 36.
>
> This is not a stock I would be in for the long-run right now. But it
> might make a good channel trade.
>
> The top of the channel is defined by the highs of 2/14, 4/7, 4/9, and
> 5/9. The bottom of the channel is defined by the lows of 1/16 and
> 3/19.=20
>
> Today, the bottom of that channel is at 16 3/4. PAIR hit 17 1/8
> today. I am very tempted to buy at this level Monday. But I'm
> worried by how fast PAIR came down. It may overshoot next week.
>
> Any opinions out there?
>
>
>
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