Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Robert Graham who wrote (39837)	11/3/1999 6:00:00 PM
From: Matthew L. Jones	Read Replies (1) \| Respond to of 44573

Interesting. Particularly the time comments. I have wondered (and not come up with any specific rules by which to play it) if there is any benefit in waiting out a day trade. Let me give an example: Suppose you go long at 61.25 because of a buy signal you received (price break above your upsloping moving average) and your near term resistance is 5 points overhead while support (other than the MA) is 2 points below. Let's further suppose that the larger market direction is also up (MA slope, indexes, vix decreasing, tick increasing, etc.). I would expect immediate confirmation that my trade was correct (move in my favor). In the event that I didn't receive that confirmation after a bar or two, I am tempted to bail the trade. The thinking being, when it should go up and it doesn't, it will most likely reverse. However, another way of looking at it is that it is a time of consolidation, in which case you would want to sit tight and wait for the momentum break (hopefully in your direction) with stop in place below for protection. How would you (or others on the thread) play this? Which is more appropriate for day trading? Is it the same for position or swing trading? Just food for thought. Matt

To: Robert Graham who wrote (39837)	11/3/1999 6:12:00 PM
From: Matthew L. Jones	Read Replies (1) \| Respond to of 44573

A question for the S&P gurus: Today we traded in a range of 12.25 points. I traded my butt off trying to make my goal. Range trading is particularly difficult for me (it took me 13 round turns to eek out 22.75 net points). Here is my question: Do any of you have a technique where you have a way of determining an average trade range movement, and then put in a buy stop at the lower end of that range and just plan to sell X points above (or vice versa when shorting)? I could have made twice as much with much less work if I hadn't been stopped out of half of my profits. In other words I would catch at 3.5 point move and give back half of it because of my stop system. If I could have determined we were going to range trade I could have caught the first double top or bottom and traded a 3 point range again and again. I've noticed that when we are range trading, the Bollinger bands seem to work real well where the 1% channels work better when trending. Is anyone else noticing this as well? Thanks for any comments. Matt