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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?


To: TWICK who wrote (38427)7/1/2001 10:08:35 PM
From: xu, b.  Respond to of 100058
 
Twick,

The font sizes were changed on my webpage. My web publishing skill improves slowly but surely. Please sign my guestbook and let me have your feedback.

I agree with you on your market view but I am not sure about the trigger either. My bet is that the bears will bleed first before the bulls get slaughtered. There are too many trend following systems in the market. Everybody knows that everybody is watching these lines in the sand. Nobody knows when somebody decides to take advantage of these lines and fake a signal that everybody expects. The tide changes when everybody is convinced that the tide is strong and the last group of traders start to ride the tide.

In fact, I tested several systems that use a faked signal followed by a reversal type of market action. Although profitable, I found they are not any better compared to the swing model that I described. IMHO, It is still a valid concept based on which one can develop a profitable trading system.

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