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Strategies & Market Trends : Waiting for the big Kahuna

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To: Barbara Barry who wrote (21935)7/20/1998 7:36:00 PM
From: William H Huebl  Read Replies (2) of 94695
 
BB,

All is in the upper chart. There are two parallel trend lines trending from lower left to upper right. When the blue plot goes BELOW the red trend line, THAT is the setup. When the blue plot moves higher and crosses the center line (middle of the envelop) THAT is the trigger. You buy puts the next day UNLESS the market is mega strong. The wait until it cools a bit.

The signal to close your position comes when the blue plot crosses the green trend line.

Bill
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