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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: Sittin_on_my_yaya who wrote (8442)	3/19/2006 8:36:29 PM
From: chowder	Respond to of 13449

Re: GLW ... It's too soon to tell. Price may only pull back to the 10 day moving average and reverse. Or it may drop to the 20 day and keep heading down. There's no way to know that in advance. So, the proper buy strategy is to buy when price is rising. That could mean above Friday's high of the day, provided it does that on Monday. It could mean Monday is a down day and on Tuesday you buy if price can trade above Monday's high of the day. The point is, my entries are never made as price is dropping. Price must trade above the previous day's high or be breaking out to a recent price high before the trade is allowed to trigger. It's not the price that we should focus on, it's the direction of price when we enter, regardless of what that price is. We want to avoid buying a falling knife. We want to avoid holding a position that trends sideways for a long period of time. If the stock we are looking at isn't providing a good buy set up, place it in a watch list and move on to a stock that is ripe for buying now. That's the beauty of TA. dabum