Befriend the Trend Trading Message Board

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Strategies & Market Trends : Befriend the Trend Trading

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To: KB who wrote (3124)	2/18/1999 2:06:00 PM
From: B. J. Barron	Read Replies (1) of 39683

KB.. what i was referring to was a recent new high $ and at the same time as the high an indicator called ADX..its is found in most software packages(aiq, metastock, windows on wallstreet etc)...you want the ADX reading to be > 30 which indicates a strong trend is in place...ADX only shows a trend either up or down so you use assc new high to filter out strong down trends...then i look for $ to dip back to a 20 day moving average (ESA) and would place a buy stop just above the high of the day that it get back to the MA...i usually place the buy stop at the open the next am...if $ continues down i am not filled and continue to watch... if price however begins to retrace itself back toward the previouw high then i m in and now have to watch out for and turn back down...i usually use the previous high as a rought target to exit...unless it goes against me and breaks a stop...hope this helps...BTW the usually time period from high to MA is 5 to 6 days on average...i trade big caps and price > 30 with volume > 100000/day.

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