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When prices do nally leave their channels and they always will, eventually those holding positions in those securities are wise to close them out, and those looking for an entry point should examine the chart as an opportunity. Figure 8.10 illustrates typical action after a channel is broken. In this instance, prices were trending slowly lower, making a series of lower highs and lower lows. A person exploiting this channel may have seized on opportunities to buy the stock when it was at the lower support line and sell the stock short when it was at the upper resistance line. But as the chart shows, the fourth time it touched the support line, it subsequently broke it, and the downfall in price from there was fast and powerful. Prices can move out of a channel in either direction, of course. Figure 8.11 shows a channel made of two horizontal, parallel trendlines. This also happens to be an inverted head and shoulders pattern, which you will read about in 12. After prices moved above resistance, they swiftly more than doubled, and a person purchasing this stock after the

The planned uses of security accounting are understood, for example, from applying ENTERPRISE SECURITY SERVICES (161). Asset types with a need for security accounting

services are known, and the general types of actors that are to be held accountable are known. Actor types can include humans, software, business or automated processes, or information systems. Actors can be internal to an organization, such as an employee, or external, such as a supplier or customer. Asset types include both physical and information assets. The degree of confidence needed for the security accounting services by general asset types is known in relative terms. For example, a museum needs a very high degree of confidence in knowing who broke into the museum and stole a valuable gem, but it needs a lower degree of confidence in knowing who defaced the outside of the museum building.

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Security accounting is an activity that takes in the detectable data from an event and provides some security-relevant information about that event to a human A basic accounting sequence is completed when security-relevant information associated with an event of interest is provided to the accounting user You need a clear set of requirements to ensure that the strategy employed for a security accounting system actually satisfies the needs of the organization or system Requirements for security accounting often conflict with each other, and trade-offs between them are often necessary You need to prioritize these requirements to determine under what circumstances you should put more emphasis on one requirement over another How can you determine specific requirements for a security accounting service, and their relative importance Below are examples of different security accounting use situations that define different security accounting needs for an organization.

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FIGURE 8.10 This channel shows how swiftly prices fell after prices violated the lower support line.

Many other security accounting service use scenarios are possible 1 Security accounting is used to establish how well financial assets are being protected over a five-year period The organization suspects that authorized access to the records is being used to misdirect funds, so security accounting is employed to help identify any perpetrators 2 Security accounting is used to search for any intrusions into the organization s network Security accounting monitors network traffic and compares that information to authorized traffic Security accounting issues an alert if there is activity that is unwanted or unexpected 3 Security accounting is used to establish a documented trail of evidence for global, very large, financial transactions Security accounting must capture transaction terms, and the identities of parties that engage in such transactions The terms and party identities must be accessible for review and reported to decision makers.

There is a risk of large financial loss, and therefore the security accounting service must be as accurate as possible..

A real-world example demonstrating the existence of the problem and the need for the pattern. Throughout the description we refer to examples to illustrate solutions and implementation aspects, where this is necessary or useful.

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