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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: nokomis who wrote (5219)	10/22/1999 4:25:00 PM
From: Charles Kalb	Respond to of 39683

To Thread........Since things are quiet on the thread with Thomas away I'll sneak in one of my trading range error channel plays. I like to overlay standard error channels on my charts because, like Bollinger bands, they provide a window frame to put the more important aspects of price action into perspective. Coastcast (PAR) has been caught in a slightly down trending error channel since early June. There have been 10 up/down swings within the channel since then, all of which were fairly predictable using oscillators. I've been watching it for a couple of weeks and decided just before the close today to try to catch the next leg down. PAR is close to the top of the channel for both the daily and hourly charts but a clear sell signal has not yet been given. I may be a little early but the danger in postponing a short any longer is that there might not be any uptick available "shortly" to be able to short, as PAR is very thinnly traded. There is sufficient volume to handle relatively small positions of a few hundred shares. So, I'm short a small position at 12 1/8, which looks like the high of the day. My target is about a point or 10% back to the bottom of the channel or lower Bollinger band within five to ten days. Charles PAR (NYSE) timely.com