DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: ynot who wrote (1707)	7/9/1999 8:30:00 AM
From: TraderAlan	Read Replies (2) of 18137

y, <Trader Allen seemed to confirm $50, but what happens next> Just for the record, I'm not sure I did that. I pointed out whole number resistance and using EWT for eyeball price targeting. One big point is that you don't need to predict in what direction the next 20% will go. Let the market tell you. Reversals on intraday charts look like reversals on daily candlesticks. If MCOM prints "dark cloud cover" or does a hole in the wall by opening at 46 and not closing the gap or does a head and shoulders on the 5-min chart or whatever, there is still lots and lots of short sale $$$ to be made. I have shorted rallies when price drives up into a prior top, even ones from several years ago. But stocks running at new highs always seem to fool on the upside. BTW you were right yesterday and had a 1 1/2 point profit at one time. <Lastshadow uses neural nets where time lag can be incorporated into price prediction> I use time considerations all the time in my trading but not with neural nets. In price dips, the logic is this : Time absorbs price Each new counter trend move requires a fresh analysis of the risk:reward potential AND time proportionality to the direct rally. In other words, the time it takes for a trending stock to reach the bottom of a correction greatly affects its ability to generate a profitable bounce within the time frame of the individual trader. Time absorbs volatility Loss of volatility is the enemy of the active trader. Flat markets steal profits as readily as losing positions. Measure the impact of time on Dip Trip profitability by counting the number of bars within the last rally thrust. Compare that number to the bar count since the dip began. Corrective moves should complete in less time than the prior rally IN ALL CASES. Alan

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