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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Spreck who wrote (7965)	4/19/2005 2:34:05 AM
From: Walkingshadow	Respond to of 8752

Hi Spreck, Glad you got a bit of profit there. For future reference, the 40 ema on the 5 min chart (same as the 20 ema on the 10 min chart) is usually a key level. Note how F trades in relation to this moving average. Notice particularly that while occasionally the moving average is briefly pierced, it is necessary to wait for confirmation before concluding that the moving average has indeed been broken. That confirmation I consider to be a correction back to test support at the moving average, then a higher high. Adjusting the criteria for trend reversal to the volatility of the stock should be considered also. 139.142.147.22 Using that criteria you would still be short, but it works best when there is a fairly decent slope in the moving average (i.e., a fairly strong trend). That strategy can be accompanied by one where you keep your stop just above the moving average (say, 1% or 2% tops), and it is simply adjusted frequently downward (several times a day if possible). That keeps your stop tight, locks in more profits, limits losses, yet doesn't subject you to inordinate risk of whipsaw or somebody gunning your stop. T