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Re: Juststocks post# 1332

Saturday, 04/23/2005 12:45:21 PM

Saturday, April 23, 2005 12:45:21 PM

Post# of 44374
As I've studied the aroons, (I'm not totally convinced yet that this will hold true in all cases), it seems that the 5 crossover acts as a signal to 'start watching more closely', and often (but not always) can get a small pop in the pps. A much stronger signal comes with 8 crossover, and gives a much bigger pop as long as the 5 is still holding strong. Likewise, if both the 5 and 8 are holding strong when the 22 crossover occurs, it confirms the trend will continue for a while longer.
Then looking back at the avg length of time each has stayed at on the top, you can begin to get a fair idea of when the top may be reached. This is where the news and the other indicators become even more important to watch. This whole scenario appears to work the same in reverse as well.
After writing this, it seems so simple that I realize it's probably "AROONS 101" for lots of you, but I'm new to aroons also, so I'll borrow/paraphrase Doc's statement..."sorry, but with aroons, I'm still working with a 40watt light bulb here". :?D
PS...one thing I forgot to mention is that it seems the lower the crossovers occur, the bigger the pop, probably since if the crossover occurs at a low level, it's because the stock has gotten just that much more 'oversold' by that time, leaving more room to move back up to the old high or next big resistance level. GLTY

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