KEEP IT SIMPLE TRADING Message Board

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Strategies & Market Trends : KEEP IT SIMPLE TRADING

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To: mistermj who wrote (92)	8/14/2003 2:47:52 AM
From: Michael Watkins	Read Replies (2) of 321

Trading within a range - by definition a congestion area, which means -- trendless -- is always a problem for trend following systems. Whipsaws are frequent. The approach I take requires price to prove itself to me -- in this case I would suggest from the following chart that a position short might be worth attempting on a break of the Tues/Wed lows, with a first target of the prior swing low. trendvue.com On the daily the SPX is on bar 5 of a bounce from the test -- its certainly moved higher than I prefer for this short sale setup, but its not out of the realm of possibilities. Fortunately the approach I use means I will not be in the trade unless price were to prove itself by coming down, so no loss incurred if surprise uppage happens. Intraday there remains evidence that the market could continue up. Guess we'll find out in several hours.

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