Thursday, January 25, 2007


We discussed Maximum Top earlier and while looking through charts (yes - that's what I do - I get up at 4 A.M. make coffee and look through charts) - I happened to see this one.

Because it serves as a great teaching instrument I thought I'd share it with you. Needless to say I don't adhere to the necessity for the three gaps to be in a row as you might find in the classical literature - I just want them somewhat close to one another as is shown here. But wait - here we have three gaps up and a maximum top but what's that after three gaps down? A maximum bottom? It could be. It could be.

I wouldn't sell the homestead and buy AAPL today but let's wait and see what happens down in the orchard after the open. AAPL looks like it's setting up for a small run. It will be interesting to see if it can get beyond the maximum top.

1 comment:


Apple seems to be the apple of everyones eye.