Re: T (AT&T) breaks resistance; SAR positive

[Brookemail@xxxxxxx]

In a message dated 9/18/98 9:11:21 PM Pacific Daylight Time,
lissen@xxxxxxxxxxxxxxxx writes:

> Brooke:
>  
>  Where can I get more information on the Widner support resistance lines?
>  They look like a hhv and llv lookback.
>  
>  Lionel


Mel Widner did an article on support and resistance, with all the formulas, in
the May 1998 issue of "Technical Analysis of Stocks and Commodities."

There are six levels of resistance, and six of support. R1 and S1 are the most
recent levels, and they go all the way back to R6 and S6. Here are the
formulas:

S1: IF(Ref(LOW,-4)=LLV(LOW,9),Ref(LOW,-4),PREVIOUS) 
S2: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S1"),-1)) 
S3: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S2"),-1)) 
S4: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S3"),-1)) 
S5: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S4"),-1)) 
S6: IF(Fml("S1")=Ref(Fml("S1"),-1),PREVIOUS,Ref(Fml("S5"),-1))

WSO:
100*(1­(Int(Fml("S1")/CLOSE)+Int(Fml("S2")/CLOSE)+Int(Fml("S3")/CLOSE)+Int(F
ml("S4")/CLOSE) +Int(Fml("S5")/CLOSE)+Int(Fml("S6")/CLOSE))/6)

R1: IF(Ref(HIGH,-4)=HHV(HIGH,9),Ref(HIGH,-4),PREVIOUS) 
R2: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R1"),-1)) 
R3: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R2"),-1)) 
R4: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R3"),-1)) 
R5: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R4"),-1)) 
R6: IF(Fml("R1")=Ref(Fml("R1"),-1),PREVIOUS,Ref(Fml("R5"),-1))

WRO: 100*(1­(Int(Fml("R1")/CLOSE)+Int(Fml("R2")/CLOSE)
+Int(Fml("R3")/CLOSE)+Int(Fml("R4")/CLOSE)
+Int(Fml("R5")/CLOSE)+Int(Fml("R6")/CLOSE))/6)

I tend to rely on R1 and S1. Those seem to me to be the most useful. For buy
candidates, I consider stocks that break up through R1. For short candidates,
I look for stocks falling through S1. It's not a foolproof system, of course.
Many times, stocks rise above resistance and then pull back. And many times
they fall below support and then rise back again quickly. But you might find
that it's useful in many cases. Examine, for example, a chart of DELL with the
indicator R1. Frequently, when the stock broke resistance, it trended up for a
while. You have to be careful to use stops, in case it doesn't continue up
after breaking resistance. 

Brooke