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

To: Knyyt who wrote (14408)	1/6/2001 3:09:00 PM
From: Ken Adams	Read Replies (1) \| Respond to of 39683

Knyyt, Thanks for sharing your modified MAX system. I've looked at these longer MAs, per Becky's suggestion some time ago. I abandoned the idea mostly because it seemed to be a little late. Tell me how you would have traded the MAX sigs on your BEAS chart. Say, the first Thu and Fri on the chart with the 5/8 showing a buy but the 50d is still declining. Please take me through some of your trades there so I can see what I may have missed in my earlier looks at this concept. Would you have stayed out on the sig to short during the second Thu and Fri time frame (with a rising 50d). Of course, that short on the last Fri of your chart was a beaut! Thanks again. Ken

To: Knyyt who wrote (14408)	1/6/2001 5:02:36 PM
From: Dr. Stoxx	Read Replies (1) \| Respond to of 39683

Knyyt, We had some discussion here about using a 3rd MA to screen out false or weak signals. Beckya was an advocate of this, as I recall, though she used the third, I think, as part of the MAX signal itself (5/8/20). Some other thoughts: -check the daily chart for the dominant trend and trade only in that direction; e.g. most of our watchlist is currently trending down strongly so one would take only short signals until a base was established on the daily chart (higher low followed by higher high) -in daily charts showing a horizontal channel (BEAS is close to this) trade both ways -or: trade full strength in the direction of the dominant trend, and trade half strength or less in the direction of the correction -instead of using stops to exit, try setting profit targets based on areas of support/resistance... TC