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Strategies & Market Trends : Swingtrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Brandon who wrote (16)	10/4/1999 12:04:00 AM
From: Brandon	Read Replies (1) \| Respond to of 551

Union Carbide (NYSE: UK) is a stock that provides a good example of a stop setting up according to our core short setup. You can see a chart of UK at: mtrader.com Since a very large gap up on Aug. 4 on news UK has become a down-trending stock. Each peak after a rally has been lower than the last, and each low following the rallies has been lower than the last. Over the last five trading days UK has made a series of higher highs and higher lows, a short term uptrend swing. On Friday's trading the stock had what is known as an inside range day, meaning the day's range is completely inside the range of the previous day. This often forms the basis for a reversal of the short term trend. The recent rally in UK has also brought the stock to an area of price resistance. These two events, combined with the core setup, should provide for a high percentage short play. If on Monday UK trades BELOW 55 1/2, and the setups behaves in the normal fashion UK will have downside momentum over the next 1/2 to 5 days. Our protective stop loss would be placed at 56 3/4. Brandon www.mtrader.com/swingtrade