Ann: Change in substantial holding, page-137

Apologies, just following this forum intermittently but the talk on CVT i do find interesting. I hold so I am not preaching anything untoward. In simple terms, a head and shoulders forms from a medium term uptrend with a break out or crest followed by a decline; then a bigger break and another decline, followed by a third break but not as big as the second and on lower volume (looks like a head with shoulders). Theoretically this is followed by a large drop in price, when it drops below the neck line. Errr that is the point were it bounces on the declines - and generally the same spot.

An ascending triangle starts with a similar set up. What you will find is a stock price that resists against a top, say in this case 0.70, and has higher lows (0.50, 0.60, 0.65 as it grows) but wont pass the top of 0.70. As people buy in, it either passes that barrier and continues (a breakout) or it fails and again drops to start something else.

Im not suggesting a plummet in any way. Im suggesting a break out above 0.70; anything below is up to you. However I am an advocate for risk management and looking at it from a 'protect your money' perspective.

Its not a science but it is something to keep in mind. I just look at the contengency of the pattern as i've learn it like many others - the hard way.

Hope this helps.