THE PARADIGM SHIFT

[fringe_remnant]

SPECIAL EDITION ADDED PROJECT

ATSX

This stock came to me after scanning for CMF Improved Stocks, which is always where I start looking. These scans avoid the hype and get right down to the meat of what is important: where the money is, what it's doing, and where it's going.

I put ATSX into a template for close up work, RSI9 etc, to see what all the local fuss was about. I was intrigued... obviously punching out on the tail of a recently formed handle, and a LOOOOONG 150/200 MA crossover underneath to power it....

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I could see immediately that the pattern was larger than my gynecologist view was limiting me to. I needed to see more.

I went to a yearly view... and got slayed. Take a look, then read on to see why I am intrigued now.

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It's the patterns that have me so struck, so rivetted. (I am a visual person, in case you hadn't noticed).

First, most of the indicators are under compression... they are diverging positively from the underside while compressing from above. They are well into the remainder of comressed cones patterns. They are getting ready to, potentially, break out of these patterns.

These patterns support the observations following.

Remember, this is a stock which came to me because the money is flowing into it. When this happens, tightly compressing pattens over time get their asses busted.

Now, look back to the chart above. Look at the Price Over Time Pattern. When you lay in the arcs to correspond to price movement over a year, you get a series of diminishing cups.

These ever-tightening, ever-smaller cups correspond to the increasing tension in the indicators as they near their apexes (apii?). The stock is getting wound up, over time. They are holding less 'negative space', that area under the 'brim' where the PPS is regressed, suppressed.

Because pattens carry with them predictability (prove it right, prove it wrong), we can use them. they are shadowed by what is happenig to the indicators adjacent... RSI, MACD, ADX, CMF etc. etc.

The pattern in this stock is there, it has inherent power, and it has something else: proportionality.

As the cups become smaller, they are always in relation to the cup that went before it, as the stock 'PPS Over Time Pattern' tightens. We can predict the cup formation out of this, using prportionality as a guide (predictions are made to be tested, proven right or wrong).

So, just for fun, I am going to try and test this pattern. I'll even give it a name, and copyright it here and now....

the Fibonacci Decreasing Cup Theorycopyright Jeffrey Poulin February 12, 2006

Fun eh? We get to see how this plays out now. I have suggested the makings of the third, and last cup to be formed before the stock pushes through that massive horizontal RRR line at 0.49.
You can see where that might occur. Each cup is a perfect propoprtion of the one that went before it... in either Golden Ratio of 1.618 or a Fibonacci expression (1,3,5,8,13,21,34,55,89 etc)... I don't know which yet (gotta do a little more work on this, geometry and math, y'know)...

The whole point of this is predictability. Patterns to be tried and tested. In this case, the pattern is supported throughout a variety of indicators, not just the price.

Let's see where this takes us.

I'll attempt to show the theory better, a little later, so you can see it more plainly.

Anybody here study le Corbusier? One of my best freinds, mentor, and architect, studied and worked under Marcel Breuer in NYC in the early sixties. Marcel was a product of the German Bauhaus, a modernist, himself a student of strict proportion.