ABSTRACT
This chapter suggests that multiple references are made to the tight stop –1/8 point which decimalizes to 125. Readers should read this as decimal 13 to 25, depending on the habits of the issue. Issues greater than a dollar are quoted at two decimal places. Penny stocks can go to 4 decimal places. The early Reversals in the pattern would have taken people out of the stock, if people follow the tactical rules based on trendlines, as previously outlined, long before completion of the pattern. Purchases would be justified in a stock whose chart showed a Rounded Bottom or Saucer, after the first spasm of activity following a long, dull period of dormancy. If people are short the stock, the same rules would apply in reverse, except the breakout in the right direction would require no volume confirmation while the adverse breakout would need such increased volume.
