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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: The Freep who wrote (86261)	11/20/2003 11:45:28 PM
From: ajtj99	Respond to of 209892

Well, we're about 5-days off the truncated 1448 NDX high and around 8-days off the 1453 high. Close enough, right? Another way to look at the market is to break up the trading ranges into shelves. I've done that on the following chart for the NDX: stockcharts.com[r,a]daclyyay[pb20!b50!b200!c13!c20!c50!i!d20,2!a1347!a1305!a1250!a1188!a1447!f][vc60][iUb14!La12,26,9!Lg!Li10,10!Lh5,5!Lp14,3,3!Ll14][J6471081,Y]&pref=G The shelves shown are 1188 (Sept. 2001 low) 1345 (April 2001 low), 1250 (May 2002 high) 1305 (the number of pills Bill Romanowski of the Raiders consumes each day) and 1447 (whatever that is, I don't have time to find it). Note the price interaction at those shelves. Those major pivot points seem to have "memory". We're close to support at the 1345 shelf, so a long here is only about 15 points off the top of that shelf, but 85-points from the next overhead shelf. The risk/reward is compelling when you look at it from that standpoint. The other nice thing is your stop is very easy to set at this area. If we got a spike down towards 1350 NDX, a stop could be only 10 NDX points from an entry, with the top of the "box" nearly 100-points above. That's a 10:1 risk/reward ratio. Anyway, sometimes I have difficulty articulating what I'm seeing, but I think you're getting an idea of where I'm coming from.