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Strategies & Market Trends : Ask DrBob
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To: Drbob512 who started this subject8/30/2000 6:58:09 PM
From: FLACK  Read Replies (1) of 100058
 
heehee And yet more stuff you can do...
Take a look at your 1 min. chart of BRCM.
Remember I mentioned using the diagonal lines to follow
the trend?
Had I been watching BRCM, I would have mentioned this at the time...
but I wasn't. Anyway here are two things I try to do as the day goes on:
1. After the market has traded for two hours, I put a
horizontal line at the high and low price.
For BRCM the high was 257 - I don't put the line exactly there, rather I put it on the 2 ema high which was roughly 256. That's close enough and eliminates the spike to 257.
Next, I do the same for the low 2 ema - which was 248 (close enough).
2. I place diagonal lines from the high (256) through
the highs (ignore the spikes) to the present price
and from the low to the present price. Now as we move through the desert, I'll look for the current trend and move these diagonal lines to match the current 2 ema.
At the 2 hour mark BRCM had bounced off its low and was
in an up trend so I follow the low ema with my line.

As long as the lows continue to get higher we're in an up trend.
Notice that in the middle of the desert broke
below that diagonal line at about 1:41 and the
up trend had ended... the 2 & 6 ema cross below
the 18 and signal a short (to the aggressive
short seller - not me because I want to wait until
we're a little further out of the desert) and the macd crosses from above.
At about 2:23 it breaks down again - the macd crosses over again and it's already below the zero line and trending down - IT'S A SHORT.
It's now at 248+ and it did turn up to 249 before giving up.
Even if you didn't catch the bottom, you could have easily covered
for about 10 points.
Boy, I wish I had been watching this!
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