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Guy,
The trend channel is constructed using MetaStock's built in Standard
Deviation Channel. I don't like it as well as a Trader Vic type channel
that does use support points, but have found that I get less false signals
using this type of channel for very short trends before there has been any
good corrections. After there has been a couple of good corrections, I do
switch to channels using Trader Vic methodology to draw the trend lines. I
have posted a complete discussion of this on my web site at:
http://www.geocities.com/WallStreet/Highrise/1025/ Click on "Trading
Strategy", then "Building Block 2", then "Trend Channels" to get to the
trend channel post. While you're at the main menu, click on the CSCO chart
and you will see that the Intermediate Term channel (dashed red) is by the
Trader Vic method.
I looked at your chart and it agrees with my longer term trend lines.
The only difference is the short term channel where Iuse the standard
deviation channel.
JimG
----- Original Message -----
From: Guy Gordon <gordon@xxxxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Friday, September 03, 1999 7:32 PM
Subject: Re: CSCO
> First, let me say that I agree with your purchase of CSCO. Cisco is a
> great company, and I have a large long-term position in it.
>
> But I don't understand the channel you draw (which looks to me
> completely arbitrary.) There are no support points for your top line,
> and only two for the bottom.
>
> OTOH, there is a clear channel including all data from February 1999
> through the present. Also, if you look at the longer term channel
> that CSCO was in from Nov 1995 thru Nov 1997, the top of that channel
> is now the bottom of the current channel (a case of resistance
> becoming support.)
>
> Here's a link to my CSCO chart:
> http://www.white-crane.com/stocks/csco.gif
>
> On Wed, 1 Sep 1999 20:12:17 -0700, "Jim Greening"
> <JimGinVA@xxxxxxxxxxxxx> wrote:
>
> >All,
> > Looking at the DJI Chart, it looks like it is now trying to bounce
off
> >the bottom of its Intermediate Term Up Trend Channel. The rest of the
> >market indices I follow haven't gotten to the bottom of their channels
yet.
> >That may mean that the large cap stocks are going to lead another turn
up.
> >I want to be on board if it does <G>.
> > I'm over 50% cash right now and want to add another large cap
position
> >if they do take off. What I want is a large cap momentum play. Looking
at
> >the charts, Cisco Systems (CSCO) looks like the best bet. It's in the
> >middle of its ITUTC and just set a new all time high of 70.31 a week ago
> >before pulling back to the bottom half of its Short Term Up Trend Channel
> >during the last week. I'm going to set a buy stop of 70 3/8 which will
be
> >another breakout to a new all time high. If I get the position, I'll set
> >the stop just under the STUTC at 65 3/4.
> > See Charts at http://www.geocities.com/WallStreet/Highrise/1025/
> >
> >JimG
> >
> >
> >
> >
>
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