InCapta Inc (INCT): Magic Box: (only for those who enjoy cha...

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martyMAC

Re: None

Thursday, 01/05/2006 3:45:04 PM

Thursday, January 05, 2006 3:45:04 PM

Magic Box: (only for those who enjoy charting)

Look for a close tomorrow with a white candle and aroon down starting to descend to 87.50 (this close today the aroon down will be at 100 which is VERY GOOD). Look at the lower Bolli touching the red stick.

The Magic Box is a pure two-day pattern. Basically the "close" of a red candle printing on or near lower Bollinger Band with the next day printing an "open white candle" (A1) On day one the Aroon Down is setting at 100 on the indicator and price is near the lower Bollinger Band. The Candlestick is dark-shadowed. (A2) On day two, to form the Magic Box, the Aroon Down must drop to 87.50, and price to form a white candle, to complete the box. No other indicator is watched until this occurs for this setup, just the Bollinger Band and the Aroon Down.

If you see a Magic Box develop, that being, on the first day the Aroon Down going from 100.00 while the close is either on or just above the lower Bollinger Band and the second day the Aroon Down is now 87.50, you have a Magic Box.

(B) Now, the buy opportunity occurs when the confirmation of two things happens: on day three or few days later the Aroon Down goes to 75.00 and the Williams%R comes above the -50%. That is the buy. The Williams must come through the -50%. It may take more than three days but you must wait for the confirmation of the William%R. I have seen again and again, the Aroon Down come down from 100.00 to zero without the Williams ever crossing the -50%, those are the ones you pass on. There will be no growth when this happens. At most there is consolidation or a small drop. During this process the Aroon Up can rise slowly but without the Williams you have nothing. (This formula is produced by Ken Goodrich @ http://www.investorshub.com/boards/board.asp?board_id=1616 ) I have a lot of respect for his theories and charting abilities.

Count 16 candles (September 12th) to the left of the CC News spike. There you will see a magic box. Also notice how much the stock declined/retraced the day after the CC announcement.

Most of the indicators look positive. Williams should turn or hold to 50. ADX +DI holding at 20. PMO Should cross. ULT still @ 50. Looking good still and should rebound very nicely. IMO. Chartist? Handdog?