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I think speed resistance fans (on log charts especially) are one of the most
powerful discretionary tools around. Esp in combination with Elliott
patterns and fib targets. The thing that is difficult about them is, in my
experience, the best way to use is to draw based on best fit, rather than on
a formula -- very touchy-feely. (If someone has a canned approach for this,
I am all ears...) If you get over that element of it, it is truly amazing
the turning points that will fall very precisely on lines at later dates,
sometimes years later. FWIW, I use 1/2s, 1/4s, 1/8s, but I have looked at
fib #s and they work well also.
Chris
----- Original Message -----
From: "BobR" <bobrabcd@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Monday, July 03, 2000 12:16 PM
Subject: GEN - in defense of Speed Resistance fans & boxs
> The speed resistance fans and boxes can be useful if applied
appropriately.
> Some criticism lately has been that they are backwards looking. If a
swing
> point is used as the first anchor and the first reaction used as the
second
> point for the box, then the line extensions provide price targets.
> Accompany the fan lines with a Stochastic and a few other things and the
> probability of detecting a turn should be enhanced.
>
> BoBr
>
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