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Stephen,
The Shark 32 pattern forms surprisingly, only occasionally and the
trader/market consultant Walter Downs wrote an article on the pattern in the
Oct 1998 issue of Technical Analysis of Stocks and Commodities.
Simply put it is a pattern of successive inside days and there have to be at
least 3 days in the pattern to form the Shark-fin pattern however, the
pattern is not a signal in itself - a breakout above or below the high/low
of the first day of the pattern must occur. Sometimes this doesn't happen or
it may occur several days after the pattern appears.
Anyway, Walter Downs suggests it can be a powerful signal so it is to be
watched. I've attached todays chart of the XAO and there has indeed been a
bullish signal.
In the following message I've attached an html file of Walter Downs Shark
article (extract) from the www.traders.com site and also the html file of
the formula for the Shark pattern provided at the equis.com site so there is
plenty of material to bring you up to scratch.
Hope this helps.
Ian Burgoyne
>From: "Stephen" <ispi@xxxxxxxxxxxxxxx>
>To: <iburgy@xxxxxxxxxxx>
>Subject: Ian please clarify meaning of
>Date: Mon, 11 Oct 1999 21:47:40 +1000
>
>You wrote on our Meta Stock list SHARK 32
>----------------------------------------
>Anyone who is trading the Australian market may be interested to know a
>Shark-32 pattern (TASC OCT'98 p44 by Walter Downs) was formed late last
>week
>in the All Ordinaries Index (XAO) as part of a symmetrical triangle pattern
>(see chart) but no signal of a breakout has been given yet.
>
>Ian Burgoyne
>Melbourne
>----------------------------------------------------------------
>Please find enclosed todays SPI action the way I HAVE INTERPRETED IT
>11 October 99
>Stephen ispi@xxxxxxxxxxxxxxx
>
>
>
><< AMMM.gif >>
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