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Another interesting thing about DELL's rally on Friday is that Bill Williams'
profitunity indicator gave it a "fake bar."
"The current bar is called a fake bar. This bar shows a decrease in volume
but an increase in the MFI. This condition denotes that the market is moving
more relative to the previous bar (the greater MFI), but the lack of volume is
evidence that there is no new participation. The price action may be driven
by just the traders in the pit and is not attracting new players from the
outside. I have a hypothesis that the traders in the pit may be just strong
enough to push the market to price levels where there are many stop orders
resting in the hands of the brokers, hence faking out the off-floor traders.")
{If((H-L)/V>Ref((H-L)/V,-1),PREV+((H-L)/V),PREV-((H-L)/V))}
However, this may be due to the fact that volume was so high on Thursday.
One more thing: Price bumped up against Dennis Tilley's support line (at 53)
on Friday:
PrCnt:=Input("Percentage",0,100,10);
LookBack:= Input("Look Back Periods",1,1000,10);
Support:=ValueWhen(1,Cross(C,Mov(C,LookBack,S)),LLV(L,LookBack));
Support * ((prcnt/100)+1);
I prefer Widner's formula for support (now at 55.5), but in any case, the old
support lines for DELL have become the resistance lines. I'll be watching to
see whether these lines can be broken through. Widner's formula is:
If(Ref(LOW,-4)=LLV(LOW,9),Ref(LOW,-4),PREVIOUS)
I'll be watching to see what happens after INTC and CPQ release earnings
reports next week. I still remember how DELL plummeted in May after HWP warned
of lower earnings.
Brooke
In a message dated 10/10/98 1:28:28 AM Pacific Daylight Time,
greatsigns@xxxxxxxxxxxxxxxx writes:
> I agree. I have found that in most cases, when using Bollinger band for
> instance, when the middle band is still aiming down and the stock starts
> rising, it will usually hit the center line and drop down again to the
lower
> band. Then it is often safer to buy. Sometimes it has enough power to hit
> the top channel and then retrace to the center line, but it needs volume
and
> strength to do this. Probably will be ok if he watches when it gets near
the
> center line. TONY
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