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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (16446)	6/8/1999 4:31:00 PM
From: HairBall	Read Replies (2) \| Respond to of 99985

donald: Nice day for shorting...<g> Wished I would have done more, but...I don't like diluting my focus or slowing my execution. It is good when a plan comes together, right bro...<g> Now the question is...how much damage does this downturn do...AND will it be enough for me to change my mind! The trend lines are being played with, as of late, by the big boys. I hate it when they do that...<g> Couple that with those MMs and ECN'ers jerking level 2 around and I could get pissed off. But I am getting better at reading the false bids/ask. I will just have to stick with my system and let the breaks (not just penetrations) above or below the controlling trend lines dictate my "investment" actions. By the way...key resistance points played a major role in the pivot points today on several indices. I may post intraday charts tonight to illustrate, but I do not know if I want to give away everything...<g> Regards, LG

To: donald sew who wrote (16446)	6/8/1999 4:50:00 PM
From: John Madarasz	Read Replies (2) \| Respond to of 99985

Donald; An interesting aside... Dr Alexander Elder in his book "Trading For A Living" notes: "In bull markets prices often make their low for the week on Monday or Tuesday on profit taking by amateurs, then rally to a new high on Thursday or Friday. ... Traders need to pay attention to the relationship between opening and closing prices. If prices closed higher than they opened, then market professionals were probably more bullish than amateurs. If prices closed lower than they opened, then market professionals were probably more bearish than amateurs. It pays to trade with the professionals and against the amateurs." pps.71-72 I have studied this tactic quite a bit and used it with relatively good success in my limited trading experience. It seems to be a pretty good indicator, albiet a somewhat primitive one in regards to the T/A so competently offered here. Many thanks to you and all the folks who take the time to share your expertise. Best Regards and Good Trading, John Madarasz