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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Timelord who wrote (88111)	2/24/2001 1:18:07 PM
From: Timelord	Respond to of 95453

Trading, TA psychobabble & the OSX Well, our resident chimp responded to my heads up post with his usual chest thumping, cage rattling, and screeching. Good thing they fixed that cone of silence again <g>. Why would I watch the OSX while trading individual drilling stocks? Hhhmm. Lets see. Maybe its because it provides me with a clue as to trend, and helps me identify buy and sell points, since most OSX components so neatly trade in unison. Of course, Foghorn Leghorn uses his proprietary "buy-sell" meter - you know, one of those gizmos they sold in the 60's that has two lights labeled "buy" and "sell", and when you press a button those lights flash furiously back and forth until they give you an answer. It's probably why he's such a nimble and successful trader <g>. Here's our friend now: homepages.enterprise.net I had always assumed that anyone who trades seriously at the very least subscribes to a live data feed and has software that you can configure to provide the data you need to trade. Although I do remember trying to trade using Quote.com's online delayed charts, and banging on my brokers live quote request to figure out what the current price was. Talk about stupid, especially with the then high flying internut stocks. But that was another lifetime. As I've posted in the past, I use Qcharts from Quote.com, which runs about $90+ per month, but I know there are a number of other good packages on the market. Since a picture is worth a thousand words, this is how I have my screen set-up: y42.photos.yahoo.com Now to illustrate what I was trying to describe to Quehubo007. An OSX daily chart with 50, 100, 200 dma for reference: y42.photos.yahoo.com And the daily's with 3 minute candlesticks during this down trend: y42.photos.yahoo.com y42.photos.yahoo.com y42.photos.yahoo.com y42.photos.yahoo.com y42.photos.yahoo.com I've used that morning run several times since the down trend started around the first of Feb as an opportunity to short. Of course, I always have an exit point and stop loss in case the chart doesn't cooperate, and there is always the problem of not getting a fill at your price. That's where the discipline comes in not to chase price, or to get frustrated and try forcing a position. I've lost money, or worse, gotten stuck with losing positions so many times doing that I don't want to count. Still do, but I'm working on it <g>. Right in the middle of this were two white candle days where the pattern took longer to develop (2-13), or looked like a change (2-14). Of course, going long 2-14 would have been painful on 2-15 as the down trend resumed: y42.photos.yahoo.com y42.photos.yahoo.com y42.photos.yahoo.com Here's the opposite in an uptrend, with that buying opportunity to go long after the morning sell-off about mid-morning: y42.photos.yahoo.com y42.photos.yahoo.com y42.photos.yahoo.com Of course in hind sight, this looks like an obvious trend change, but hard to recognize at the time other than the fact that your easy trades suddenly become hard and you have to use your stop losses a lot: y42.photos.yahoo.com I'm not trying to talk anyone into a trading system because I'm the first to say trading is completely individual and trying to trade based on what others tell you is a losing proposition. Some of you can use these and see your own patterns and get ideas and those are the people this is for. Those folks who think TA is psychobabble will look at these charts and see a bunch of stupid lines that don't mean anything. I really don't need to hear your opinions on the subject <g>. Good trading to all. Alex