Biogen Chart (BGEN)
                       I  have  included  the  Biogen  (BGEN)  chart  as  itincludes three different buy situations. BGEN  had  made  a  60.25  all-timehigh on 4/8/99, corrected down to 45.125 on 4/26/99 and was trading back  upover its 10, 50, and 200 day EMA’s. The pullback to the 20 and 50 day  EMA’sgot my attention. They are oftentimes excellent entry points in  up-trendingstocks (sells reversed). Shorter pullbacks of 3,  5,  7  and  8  days  oftenprovide the strongest trades.
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                       TRADE A
                       Day 1 - After a 5  bar  (daily)  pullback,  BGEN  re-crossed the 50 day EMA and closed at 54 1/16, at the top of  its  range  andright at the 10 day EMA. The stock had made a swing point  high  of  58  1/8(S1) on 1,787,000 shares and pulled back on  average  volume  of  less  than600,000 shares. The BTK (Biotech Index) had the same  pattern  as  BGEN  andwith increasing RSI.                       Trading plan entry point was 54 1/4 on  Day  2  whichwas 1/16 above Day 1’s high of 54 3/16.                       Day 2 - BGEN opened at 54 1/8 and got good  entry  at54 1/4 and stock traded to a high of 56 1/4.
                       TRADE B
                       After a 3 bar thrust move from our Day 2  trade  BGENhit 60 3/16, just under the 60 1/4  high,  then  consolidated  for  7  days.(Sound like a familiar number?) All of either the opens  or  closes  of  theseven bars were within the range of the S2 swingpoint bar.                       Day 1 - After two  bottom  range  closes  on  averagevolume  of  approximately  740,000,  BGEN  gives  us  an  excellent  outsidereversal day on 1,029,500 shares and closes 1/8 under the top of  the  rangeat 59 5/8. This told me that someone was  anticipating  a  breakout  to  newhighs above 60 1/4.
                       Trading plan entry point for day 2 was 59 7/8 or  1/8over outside days high of 59 3/4.
                       Day 2  -  This  was  a  second  entry  after  gettingstopped out, but it proved successful as BGEN traded to a high of 66 1/2  on3,914,500 shares. (More about reversal days in pattern chapter  next  week).Once again you saw that expansion in range on Day  1  with  an  increase  involume and close in the top of range. You had to sense  that  if  we  had  adecent tape on Day 2 that the Generals would take it to new  highs,  but  itwasn’t an easy entry. The stock traded down  to  58  3/8  before  recrossingentry point. It happens often.
                       TRADE C
                       After the big  WRB  move  up  on  Day  2,  BGEN  wentsideways for 10 days. This is very normal after these kinds of thrusts.
                       Day 1 - BGEN closes in top  of  range  on  move  thatdoubled the previous day’s light volume.                       Day 2 - Stock has a  higher  high,  higher  low,  andcloses in top 30 % of its range just below the day 1 close. This was  enoughaction to plan entry the next day for possible run to new highs  again.  Themomentum players love this kind of play.                       Day 3 - BGEN opens at 66 3/8, ticks to  66  1/4,  andthen takes off. We enter at 67 1/4 which is 1/8  above  Day  2  high.  Stocktrades to high of 69 11/16.                       Now, I can draw some lines over the pattern,  and  wecan make it a symmetrical triangle, trading range, or whatever  other  namesyou can think of, but who cares. You saw enough on Days  1,  2  and  3  thattold you to get on the same jet as the Generals.