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37 qualified it as a weak position. There was a good probability of a fast move down, lasting for at least 90 calendar days, or three months, possibly more. Aetna found support on the eleventh week count from the high week, and at the price level of the higher low in April of 1981, and began trading in narrow range on light volume, an indication that the liquidation may have ended. Price moved through the 45 degree angle down from the high in July of 1982, putting it in a stronger position, and by the week of 8/20/82, on the square of the range from the April top to the February, 1981 bottom, price is showing a possible bottom, marked by the small range of movement for a number of weeks, and the support level at 33 having not been broken in three attempt- a possible triple bottom. On the monthly chart, July of 1982 is three months from high, and August of 1982 is 1 1/2 years from low, or 18 months. From the low made on the weekly chart during the week of 8/13/82, price moves up, for 10 weeks, then reverses and spikes down on the eleventh week- volatility is a sign of top- and then reverses back up during the twelfth week to find high 90 days or 13 weeks from the low. The next drive down lasts for 13 wseKs. You should now study this monthly chart. Notice how support and resistance shows on zero angles, angles from 50 percent and true trend lines. Count the number of months to counter trend moves. For inetance, the low in February, 1983 wae on a 45 degree angle from 50 percent of the high. if you had evidenoe on the daily chart for a double bottom against the June, July, and August lows in 1982, where would you look for resistance in time? The move down was three months (90 days), which was, also, six months (180 daye) from low. So in April, 1983, time is one year from the all time high of 48 (12 months is 1/4 of 48 or 1/4 of the square of the high), six months from high, nine months from low (270 days), and three months from low. Check the Square of Nine for price, in this instance 180 degrees from high and low. You should check all moves with the square of nine for price. AMOCO (AN) There are two things to note on the Amoco weekly chart in regards to angles (Illustration 6.0 & 6.1). First, the conjunctions of angles, where price moves into two angles such as a 2X1 and a 1X1, are very strong support or resistance as is shown by the weeks of June 10, 1983, and October 15, 1982. And second, angles up from zero from the dates of significant highs and lows are important, as was shown by the support that was found at 47 the week of 10/23/81 was from a 45 degree angle drawn from zero from the date of the December, 1980, top.
/ / 98/S /6 n/ts/s
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