RE: RE: RE: RE: RE: Thanks Frank...
I'm in the same service and got the same message - its a mathematical rise-over-run calculation based on statistical averages. Uses rise over a period, and then the difference between the start of the rise and the breakout point times some statistical multiplier. But, it also reflects on market sentiment and supply/demand.
If you go to Hanfeng Evergreen (T.HF) and look at the 5-year chart, you can see an example of it. Insane demand from everyone jumping on the bandwagon drove it up from $4 to almost $16 in less than 6 months. But then fundamentals and reality took hold and you can see it trending back down, then the crash came along and since then it has come back to the trend-line established pre-2007. Its a solid technical analysis pattern, as long as there is nothing big to cause a throwback.