LastShadow's Position Trading Message Board

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Strategies & Market Trends : LastShadow's Position Trading

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To: LastShadow who wrote (406)	9/17/1998 11:45:00 AM
From: Dave Shares	Read Replies (1) of 43080

Modified Gaps (Please allow me to beat a dead horse) I understand that we are dealing with general rules. You had stated that for a Modified Gap strategy, the stock has to open below its previous close and have a substantial volume increase. I'm looking at NSCP this morning (Sue, I held too). I am not saying it qualifies, because volume probably isn't significant enough, but for this example, let us please assume significant volume so I can get my question answered. Opens at 21 7/8 High (before 10 :30) of 22 5/8 75% of difference is 22 7/16 Now here is my question: If I look at 10:30, and NSCP is trading below 22 7/16, I know that I can try a strategy of setting the buy stop at 22 7/16. What is the strategy if NSCP is already trading above 22 7/16 at 10:30. Is it a buy at the 10:30 level ? I am only using NSCP as an example, I am basically curious as to what one does when a stock that has opened below its previous close, has substantial volume, and is trading above the 75% difference level between open and morning high as of 10:30. Thanks, and please excuse me for taking up so much time with this. David

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