Soul Patterson 17/7/99


Soul Patterson 17/7/99

This chart is for the trader.

Define the trend yes. But don't let it fool you either.

As a trader I must know the trend. On the daily chart, SOL is clearly up, no problem. Higher tops / higher bottoms. Widening the time frame can often be additionally useful however.

See the extreme high at $63, then the move down to $24. I calcualted the daily up trend, as an upward retracement of the larger weekly down trend. Buying at $34 (X marks the spot) gave me a target Gann mid point of $42 as an exit. Mission accomplished. Yes I am proud of that exit.

ps; SOL is a little less heavily traded than other stocks, so I used the closing price high at $62 plus the closing price low at $23.50 to get the average mid point of $42 75. SOL may well move higher, but not first without retracing, in the daily time frame at least, the move up to $42 off $23. The fact that SOL fell slightly short of 42.75 in the first instance shows a little weakness.

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