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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: sammy levy who wrote (55616)	6/5/2006 7:08:15 AM
From: sammy levy	Respond to of 59879

lexi, I will give you an example of what I mean by: "That way we may select a premature entry point causing a bad trade." The example is from the book. According to Fisher the price differential for BRCM is .76 cents. Which means that once you have the opening range the price has to move .76 cents to establish an A point (time frame permitting). Who would think the A point is after a .76 move??? I would most likely make the trade after .20-.30 cents move which according to Fisher's calculations is premature!!! What makes it even worse is that the price differential seems to change with time.I assume that because he frequently uses the word "current" when he mentions the price/ticks differential. Am I wrong? Am I missing something? Sammy

To: sammy levy who wrote (55616)	6/5/2006 8:27:57 AM
From: lexi2004	Read Replies (1) \| Respond to of 59879

Sammy, I understand; however, that waiting for it to trade 5 minutes above the morning range is to assure you that the move is real. Some people jump in when a new HOD is made only to watch the stock go back down, but if it trades 5 minutes above it, that should give you more confidence that the move is real. All stocks seems to have their own pattern of trading. GNBT was one wild one that I traded for a long time. It would make a HOD, take out the LOD, and then make a new HOD. It could drive you crazy if you were trading it short-term unless you studied it and got a feel for it. Here's what I would suggest you do: 1. Do a five day chart of a stock that has some volume and movement. 2. Focus on just one day at a time of that 5 day chart. Using one day, put in a horizontal line for the high/low of the first 10 minutes. 3. Look at the chart and see if it goes above that high/low mark for at least 5 minutes after the morning range is set. Draw a horizontal line at that new hi/low mark. That will be either your guideline for a point A high or a point A low. (The low meaning if you go short. Remember your stop is the other side of the opening range due to whether you are going long or short. 4. Then see how the stock trades and if you followed what the LOGICAL TRADER says, would you do okay with your trades. Now not all trades work out, but IMHO it is an excellent strategy for giving you a clear cut plan for the day on how to trade the stock. Again, after you do it for awhile, you'll hardly have to draw those lines, you'll just have a feel for it and you'll always know your stop. If you are long, if the stock breaks the low of the morning range, you get out. If you go short, then if it breaks the high of the opening range, you cover. Do note that often times MMs will take it right above/below those numbers just to shake us out. They're reading all we read too.:) So that's where flexibility comes in. Instead of getting out right after that break of opening range is made, you might want to give it a few cents. That's where your TA comes in for looking at more than intraday charts. Be sure you are looking at daily charts and weekly charts to find lines of support/resistance. Those are very important. Lexi