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Guy,
A point away from the bottom of the channel when the channel is more then
6 points wide is still a good entry point. If your stop is at 24 3/4 and
your target is at 31, entering around 26 would still give you a 5/1.25 or 4/1
reward risk ratio. My minimum acceptable ratio is 3/1. Of course, higher is
better <G>.
Jim
-----Original Message-----
From: Guy Gordon
Sent: Tuesday, May 27, 1997 2:21 AM
To: metastock-list@xxxxxxxxx
Subject: Channel Trade: ADI
Analog Devices (ADI) was at the bottom of its channel Friday morning.
It rose strongly all day, and closed at the high 26 1/4
I may have missed this one, but I have an order in today for 25 1/4,
just in case it goes back down today. =20
I draw the channel support line through the lows of 3/25/97, 4/23, and
5/23. This line coincides with the 50-day MA for the last month. The
top of the channel goes through the highs of 4/7 and 5/8.
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