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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (24669)	6/28/2000 3:22:00 PM
From: Robert Graham	Respond to of 42787

Yes, indeed one must not let emotions enter the picture at all. But sometimes this is tough to do. That is when it is best to take the day off. I lost $400 today on playing the price action after the Fed report when I though price had started to "behave". I have ben able to do this before, but my timing had to be perfect to profit in this way. This time I performed two trades. Just when price settled down and started to resolve my way, it then would put in a big whipsaw getting me out of the position. After whipsawing again for a period of time, it then continue going in the direction that I had originally anticipated. Live and learn. Never again. But I am seeing a pattern here. As I mentioned in previous posts, I think the market has a time frame (one or more) that it operates in. Many markets run in one or two with some running in three. One time frame is usually between the 1-min to 3-min time frame. My last trade was on a top put in on the 1-min thinking that this is where the action is to be found after a report. Action?? Whipsaw city! No relevant action. What I have observed is that the top I was trading did resolve in the same style such a top would resolve in given its size under more normal market conditions. So even though the action after a report misleads, the moves of relevance come in the same way the market has been trading before the report and keeping to the proportions of the setup that is encountered. The "action" is just noise keeping the trader from seeing the "obvious" that the market responds to which shows up in the relevant price action. The underlying properties of the market apparently still remain intact through the report. And if it speeds up, it will tend to quickly slow back down. The increase in speed is in terms of increased energy that goes to more whipsawing than direction. I also find looking for candlestick bodies in the appropriate time frame and ignoring the tails helps clear up allot of this picture up. I hope this makes sense. :-)