Forum Archive Index - August 2001

[Phaedrus <Phaedrus@techemail.com>]

Paul/Noriko,
             You asked whether WHS was now in a new (short-term) uptrend. The 
answer is - very nearly. An Uptrend begins when you have a Higher High after a 
Higher Low, so anything above $5.75  would do it. See the short-term chart.
  Buy/Hold/Sell decisions can only be made within the context of your own 
individual trading horizon. Everybody wants to hold stocks that are going up, 
quitting them when they are going down. The preferred trading frequency is the 
main variable factor. Chart parameters should be chosen to suit this, as 
illustrated below.
  The Long-term chart covers 6 years, and has monthly Candlesticks. You can see 
why a long-term investor such as Peter is very happy to hold this stock as it 
continues to make higher highs and higher lows in a sustained uptrend.
  The Medium-term chart covers 1 year, and has weekly Candlesticks. A 
medium-term trader such as myself tries to trade the zig-zags that constitute 
the Long-term trend, aiming to be in when they are up and out when they are 
down, so I am currently out, and have been for 9 months.
  The Short-term chart covers 2 months, and has daily Candlesticks. A 
short-term trader tries to trade the zig-zags that constitute the Medium-term 
trend, and would currently be in. 
  Three different people, all using essentially the same approach, have made 
decisions to Hold, Sell and Buy WHS. The only difference is the timeframe each 
has selected to operate in.
                 Phaedrus.

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