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It's not a flag/pennent - generally a very tight rectangular pattern sitting
atop a short(time)/sharp(price) rally/decline. What you are seeing is a
corrective pattern which, because of it's length, is best viewed on a weekly
chart. Weekly chart pretty clearly suggests that the pattern is a bearish
triangle - top sloping down and flat bottom which is about to be retested.
Should the bottom break cleanly, it would not be unreasonable to believe
INTC is ready to correct the entire 5 wave rally from 1994 by declining into
the mid-30's. Note also that spring is a seasonally bearish time for tech
stops. Edwards and McGee Technical Analysis of the Stock Market is the
classic authority on trading patterns - a book which should be in every
trader's library.
Earl
----- Original Message -----
From: Linda Swope
To: RealTraders Discussion Group
Sent: Sunday, May 23, 1999 8:42 PM
Subject: GEN: A flag? A pennant? Meaning?
Hello all,
I have a lot to learn about patterns. I am not making any trading decisions
off them, rather I am trying to make sense of what I see and understand
traditional interpretations.
When I look at a 12 month daily chart of INTC, I see a pattern, but I don't
know whether to call it a flag, a pennant, or a wedge. And I don't know
what it means. What is the traditional line of thought regarding a pattern
like this? Again, I'm just trying to add to my knowledge base and I
appreciate any feed back!
Have a good trading week...
Linda
Swope's Mountain Photography
http://www.swopephoto.com
linda@xxxxxxxxxxxxxx
Climb the mountains & get their glad tidings: Peace will flow into you as
sunshine into flower; the winds will blow their freshness into you & storms
their energy, & cares will drop off you like autumn leaves. John Muir 1838 -
1914
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