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Guy Gordon wrote:
>
> Here's an interesting chart: http://www.white-crane.com/apm.htm
> Applied Magnetics makes thin-film and magneto-resistive heads for disk
> drive makers.
>
> My problem on this chart is that I can draw TWO perfectly good Raff
> Regression channels on APM. Which one is the price really on?
>
> The first channel is from 6/26/97 to 8/19/97, and then extended right.
> Parallel to this channel I generate a trendline using a Linear
> Regression line on the 26-day Moving Average, from 7/10/97 thru
> 8/19/97. All these lines are dark blue on the chart above. APM has
> just tested the trendline twice.
>
> On a shorter term basis, I draw a light-blue Raff channel on APM from
> 7/15/97 thru 8/25/97, and extend it right. APM is in the middle of
> this channel. This channel is not yet verified by my 26-day average,
> though in the last week you can see just a hint that the average is
> turning to run parallel to it.
>
> My question is: Short of waiting for one of these channels to be
> violated, are there any good indications of which one the stock will
> take?
Guy,
Have you read Raff's book? He points out the significance of
intersecting Raff lines. Intersecting lines from different time periods
tend to provide areas of support and resistance.
Bill
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