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Strategies & Market Trends : Trade What You See, Not What You Think -- Ignore unavailable to you. Want to Upgrade?

To: aldrums who wrote (282)	1/19/2001 9:00:41 AM
From: chris-	Read Replies (2) \| Respond to of 867

Wiggles.. Do they all watch them, yes and no. The wiggles I refer to were the ones you and I see immediately, meaning, we find a pivot and normally at first signs of resistance, out we go with at least 1/2 of our positions. In talking to a few TA traders that play the stocks with 2 points stops for 4 point gains type trades, these immediate wiggles aren't a concern to them. Who is axing it isn't a major concern, bid/ask strength at a particular price level, etc. Once the stock begins to approach a defined support level or resistance level, then they begin to watch it a bit more (as they tell me)...I guess we need to define the "time range" of wiggles..gee I sound like an Internet analyst making up new valuations. I was mainly talking of trading with not the immediate resistance to our trade. Mixing the styles, I'm still not convinced it's a horrible thing and here is some thought: Again, no need to agree with me. Our methodology of tape reading goes right to the root of the movements as we are able to see all sorts of trading psychology at any price levels and we can respond to them immediately. Traders that are using charts (and why I'm interested) is that they are able to see where likely supports/resistances will be at any given time frame on the 5 min, 15 min, etc. This would allow us to develop reasonable if/then's during the day as we are watching a certain minute chart, much like we did with CTXS and IMNX yesterday. Once we have areas defined, we can watch the tape itself to let us know if the stock should be entered or not meaning: on CTXS we defined support near 31 3/8 and fast paced selling came into 31 1/2. As we know, fast selling is a tape principle for reversal and the chart/fib/MA etc. support defines this as a reasonable area to bid into. Therefore, I'd have more confidence in bidding into such a stock. On IMNX, the selling pace didn't stop at all in the 33 area and blew right through support making this one I'd not want to try. The support area was defined earlier by watching the chart/fib/MA, etc., but the tape at the point the support was reached, said leave it be. This is how I plan to use both styles. When entering the trade, I plan to understand how to use above time frames to see where resistance lies in long, support in shorts, so that I may be able to learn when to work through the immediate wiggle with more confidence. The tape will show a resistance at a price level but the 20MA or some other resistance on the chart says that real resistance is 1 point higher. Again, this is all theory as I have just began trading in such a fashion working not off straight tape reading principles so if anyone finds flaws with this, please feel free to correct any wrong information on this foundation of thought. Sincerely, Chris