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Attached is a chart on YHOO.
On the left half of the chart we see a low near 10 (marked with a
horizontal line 'bottom').
We see the breakout near 28 and market with a horizontal line 'top'. The
difference from top to bottom is 14. We add 14 to 28 for our price
target of 42.
( I need to make a point here. There is a better technique where you use
the ratio 28/10. But at the moment I can't remember the technique.)
I will use the same technique as above for the right hand side or
YHOO2.gif.
Two important points: look at the two circles. We see higher lows prior
to the breakout. I drew a trend line.
The above technique was presented by a gentilemen from Perkins Capital
at our Metastock meeting last month in Minneapolis.
Harley
Attachment Converted: "c:\eudora\attach\Yhoo11.gif"
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