Swing Trading Set-Ups using the Methods of Alan Farley and L Message Board

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Strategies & Market Trends : Swing Trading Set-Ups using the Methods of Alan Farley and L

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From: Wizard	2/24/2006 1:14:39 PM
	of 14

Let me just follow on. In modern markets, professional buy programs have come to dominate the intraday markets. You cannot predict these program trades -- they are computer generated trades written by MIT graduates working for the big firms like UBS Securities and Morgan Stanley. You do NOT want to make your living in competition with these guys by chasing the market around. It is impossible to do that as they are smart people who write the software to fool you. The way you beat them is by doing what they CANNOT do. Big institutions need volume (liquidity) to make their strategies work. They will swing the market back and forth creating volatility with the real purpose of bringing volume into the market so that they can then executre their arbitrage strategies and take the publics money. It is not unethical, it is simply their goal to make money by taking yours. Take advantage of the fact you don't need big volume to execute profitable strategies. Buy MATURE 'consolidation patterns' when things are quiet -- not AFTER the breakout... Big institutions would move the market too much if they tried to execute this. It is inherently impossible for them to do this. But not for you. Your risk is much, much lower if you buy during the consolidation... You can often buy on the bid or very near it and you won't get whipsawed for big losses. Even more importantly, you will know quickly whether you are on the risht side of the next big move (big moves come after periods of calm)... you will still get multi-bar breakout gains when you are trading well and stocks are responding... This is ideal reward:risk situation... If you buy during a narrow conolidation, you will know very quickly if the burst starts going against you. You can sell the first adverse expanded price bar yet you can hold on for multiple bars if the 'volatility expansion' goes your way. You can then exit and go on to the next compressed stock... You will take many very small losses while nailing some good trades and beating the market. Come join me in this quest...

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