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

To: bobby is sleepless in seattle who wrote (44)	10/4/1999 10:47:00 PM
From: Brandon	Respond to of 551

Moving averages also tend to serve as great levels of resistance in the context of downtrends. For trading purposes I use the declining 10 day, 20 day and 50 day simple moving average. Strong downtrends tend to decline off of declining moving averages. When we see the Core Swingtrade Setup, and the pullback has brought the stock back to a declining moving average this greatly increases the accuracy of the our setup. Should this moving average also occur at an area of minor price resistance, as previously discussed, the odds are even better. A Narrow Range day is in which the day's range between the high and low is smaller than normal. A Narrow Range Day (NRD) indicates that a change of trend may be near at hand when it occurs after a move of several days. Turns after NRDs tend to be especially potent. We look for our core swingtrade buy setup and a Narrow Range Day as a nearly ideal setups for a long entry. Should we see a Narrow Range Day at a rising moving average and or minor price support we view this as one of our strongest setups. We look for our Core Swingtrade Short setup and a Narrow Range Day as a nearly ideal short setup. Should we see a Narrow Range Day at a declining moving average and or minor price resistance we view this as one of our strongest setups. Brandon www.mtrader.com/swingtrade