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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: compradun who wrote (9507)	7/14/2000 5:09:55 PM
From: TraderAlan	Respond to of 18137

Comp, Here's an example of making money the old-fashioned way. I did this trade today. Have probably done it a dozen times in the last 2 years. The setup is a continuation gap that telegraphs itself before a stock completes a full 5 wave rally. The clue on this Nextel chart is the classic double triangle that makes up the 2nd and 4th waves. You take a Fib grid, find the beginning of the rally and stretch the 50% level over the gap. The profit target is the completion of the 5th wave. I snapped the 1st graphic right after I bought the stock at 71 3/4 on a simple symmetrical triangle breakout. See the target at about 73 1/8. 2 NXTL 5-min charts hardrightedge.com As the stock rallied I entered a sell order at 73 3/16th 4 or 5 times and kept pulling it. The stock hit 73 but started to weaken. I dumped at 72 13/16th for 1 1/16th profit. 73 was the high for the day. The Fib grid in the 2nd graphic shows how close to center that continuation gap finally printed. No home run here but a nice single or double. I can't complain. Writing the book really focused my energy (this trade setup is in it). My win ratio is over 90% since late April. Alan