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break this angle during the next week, and, having that confidence, you would now be seriously looking for long positions in the stock. The next resistance from angles is the 45 degree angle from that same September high, and that is encountered late in the month of October.

By this time, you are probably getting frustrated by taking long positions from the weekly chart and not getting results, so look at the monthly chart, again. In the month of December, the 2X1 angle down from the top is broken. Now, on a monthly basis, the corrective move down is over. So, you are again looking to position long in this stock, and you know that you have good support from a proven angle, which in January is at the 64 to 65 price level on the monthly chart. That is where you want to buy.

Lets go back to the weekly chart. In January, a small range from the consolidation is working out in the week of 1/17/86. That is the range of the high, in 11/15/85, to the low of the 11/1/85 week. In,, and of itself, this is enough evidence to look for change. However, time, also, is 11 weeks from that low, and 26 weeks, or 1/2 year from the July 19th high. There is some accumulated evidence indicating this week, including the fact that the 45 degree angle down from the start of the fast move down has been recovered. In addition, time is three years from the 1984 high, and the stock is in a strong position from top.

During the week of January 10th, price spikes down, closing low, and very near the support angle on the monthly chart. The next week, price is at that support angle, and there is evidence for change. The major resistance for a move up from the angles down from top has been overcome, and price is at the buy area. Go ahead. Make the trade, and remember that you are looking for a minimum three week move up, and even a possible a three month move up.

Of course, now that you have made the trading decision, you should use the daily chart for timing the entry and exit the position. (Illustration 7.3 & 7.4)

The move up, which occurs from the week of 1/17/86, gives the look of an acceleration, with corrections being small in time. The first correction is three days down, the next is one day (on a thirty day cycle), etcetera. The corrective moves, in both time and price, get smaller and smaller as price moves up. When you see this, you can assume a 90 days calendar move. The move will often end on the 90th, and no later than the 99th calendar day from the start of the move. By the 90th day, you can see that price is starting to give a bit of sideways action, and price is trading below the 2X1 angle up.

Now the consideration is that the move up may be ending, and you are looking to get out of any long position and possibly go short the stock. Time is six months from bottom, and one year from the previous bottom, and there has been a fast three month move up. Often the way these cycles terminate, such as a one year cycle, is in a 49 to 52 day blow off from a swing low. This is Ganns seven week death zone, and it applies to fast moves.

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