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Claud....
As we all know, or should know, there is no sure fire method, even in
technical analysis. My use of the 3-line break is only in a long term basing
pattern where I may want to buy the stock while it is in the lower part of
it's base. Let's say the base pattern is between 15 an 25. The stock is
currently under 20 but above 15 and I see a 3-line break reversal. If I
bought on that signal, I would place a mental stop just under the lower limit
of the base. If the price broke that lower limit, most likely I would be
gone.
Any other type of trading the 3-line break just plain results in one getting
whipsawed. But it is a tool that I do look at and will use as above.
Jerry
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