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

To: Knyyt who wrote (14521)	1/7/2001 8:48:44 PM
From: smchan	Read Replies (1) \| Respond to of 39683

Those of you interested in 3MAX really ought to read the Bowtie system in the November Active Trader magazine mentioned by Ken. The rules are somewhat more complicated than MAX, but it's a strictly mechanical method utilizing 3 MA's. The system, as described, uses daily charts but I'm sure it could be adjusted for hourly. In fact, the first modification I'd try is Becky's 5/8/20. Sam

To: Knyyt who wrote (14521)	1/7/2001 8:51:59 PM
From: Dr. Stoxx	Read Replies (2) \| Respond to of 39683

Busy day for me tomorrow, folks...start of a new term...but I'm wanting to get back into the MAX game...particularly to show that it can be done by busy prof.'s who only have the time to check once an hour... May just trade a smallish lot...and the most I can check is hourly. TC

To: Knyyt who wrote (14521)	1/7/2001 11:04:00 PM
From: ru2	Respond to of 39683

Knyt, I am taking a break from my method which uses the 8/5 cross over which I picked up from this thread. Also I am using fib retrace a 30 EMA and trend lines. Sometimes other things but mainly these. It works but, there are enough variables that it becomes to some degree what looks good, rather than being mechanical. I was in EMA and VSH last week made a good percentage on EMA but it was a headache had me really worried for a while. Made out on VSH twice for less percentage but worried a lot less and could make a bigger bet and made about as much money as on EMA. I'm %100 in cash at the moment and an looking to try TC's method and the modification Beckya suggested with the 50 ma. Both are mechanical in my book. Sorry if I was unclear<LOL> Rumor has it I have been guilty of this before. <G> It is my method I am giving a break and trying the pure 8/5 swing or the modification you are using. Again both very mechanical in my book. Stop management is a whole nother ball of wax. I have been playin stocks like EMA for a few reasons. One they take off like rockets and if you only catch part of the move you can make out really well. The other reason is that the market makers can really manipulate a thinly traded stock like EMA. I wanted to learn about the games market makers play. I never used more than %15 of my capital when playing EMA. I do think I have gotten a better feel for how the market makers try to chase people out of their positions, Often right before the stock takes off in the other direction. Look at the extr short signal on 10/04 it opened at 40.5 and then went to a high of 42.31, if my memory is working right ( I have just finished dinner and a few margarita's and am using some one elses computer and don't have a 5 minute chart. )It went down first then went up to 42.31 making the rise seem more dramatic. From the open to the high was a move of %4.2 taking out a 3% stop. Since it went on to be a profitable signal It was actually a stop profit rather than a stop loss. Hmmm... Do those market makers know what we are doing ? Personally I think so. I am sure there are some reading this that think market makers are really nice guy's and I am paranoid. ;) and that's O.K. we can agree to disagree. Maybe I don't know how to pick the right stock to use a stop loss. If I can learn from you how to do this I will be one happy camper because I find that if I can worry less and remain cool I make better trades. JNPR was a stock I played briefly that was easier to use stops with but then it quit behaving like a leader and I stopped trading it. Wether stops worked or not had nothing to do with the 8/5 method or adding the 50 ma. It had to do with how thinly the stock was traded and market direction. Also I think it has to do with the volatility of the stock and which type of traders trade the stock and who the market makers can make the most money shaking out of their position. JMO maybe I am to paranoid. I like your idea that the 50 ema keeps you trading with the trend. I also like the simplicity of TC's method in kkeeping in one stock so you are always there for the big mmove that keeps you in the money and makes up for the wwhips. As he says you gotta have the right stocks. Thanks for starting the chat room it was great see u there on monday. :) Ru2