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Harley....
It is the same as looking at the history of prices for a given security. For
example, IBM traded at pre-split $175 years back. When in recent years it
approached that price, it was challenging it's all-time high, which it finally
went through....a good technical indicator.
As you know I like bases as a pattern. Look at CD. It formed a series of
highs in recent years and finally broke through, pulled back and tested the
high portion of the base, and then, took off.
When something like that happens, it is said to be in new uncharted
waters....there is no existing over head supply....and is indicative of a good
long term move. Thus my strong liking of base patterns.
The same principles apply to indicators. In the case of NYSE breadth figures,
one could say they are at 24 year highs. Average daily volume is at an all-
time high. It is just another relative measurement.
Jerry
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