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Ed:
What do you mean by "demand line" and "supply line" ?
Lionel Issen
At 10:52 AM 12/5/97 +0800, edpoon wrote:
>I am in agreement with you, Dr. Roffey. According to Curtis Arnold, the
>rising wedge is a five-point pattern. In one formed during an uptrend,
>there are two points on the demand line and three points on the supply
>line. In the case of one formed during a downtrend, there are three points
>on the demand line and a minimum of two points on the supply line. In both
>instances, the important point to remember is that the supply and demand
>trend line of the pattern must converge.
>
>On this pattern, Edwards and Magee said: There is no evident barrier of
>supply to be vaulted but a gradual petering out of investment interest.
>Prices advance but each new wave of interest is feebler than the last.
>Finally demand fails entirely and the trend reverses. Thus a rising wedge
>typifies a situation which is growing progressively weaker in a technical
>sense.
>
>Curtis Arnold did 10 years of reserch on chart patterns, and found the
>probability of success, or percent of profitability on rising wedge (on
>uptrend) to be 100%. However, the sample size is very small. As for
>rising wedge on a downtrend, the percentage of profitability is 37.5%.
>
>Curtis Arnold did his research on commodity, not on stocks. So using this
>information carefully.
>Ed Poon
>
>
>
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