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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: keith massey who wrote (1178)	6/20/1999 8:35:00 PM
From: TraderAlan	Respond to of 18137

<I found that using the ART of visually finding support and resistance level worked better than any math indicator> Yes indeed. Alan

To: keith massey who wrote (1178)	6/20/1999 8:51:00 PM
From: -	Respond to of 18137

<re: setting stops with TA> Yes, that's how I do them, too - then I often do a sanity-check with ATR... it's a useful normalized reference (as is a "dollar stop" calculation based upon position size). Regarding all this discussion of angles... don't want to jump into that, however I would point out that a better (normalized) way of looking a how "extended" a stock is, involves looking at where it's trading with respect to it's moving average. For example, if stock X get's more than 30% ahead of it's 20-day moving average, there is a very good chance of a pullback - it's risky up there. The 50MA is too far away; my eye likes to watch stocks with respect to the 10-period SMA. Once they get in front (above) the 10 SMA on the day chart, you are definitely ripe for a pullback - sometimes, before that. It depends on the stock. The point is, I use MA's (vs. trendlines) to gauge any particular stock's state of "extension" or "contraction", because it is a normalized measure which can be easily calculated and displayed consistently from prices, on any charting package. Greg, out at Pristine Capital has done some great work in this area - he has some "% probability of decline" vs "% above x moving average" tables which are very interesting and useful -Steve