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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Big Dog who wrote (82303)	4/3/2007 2:51:23 AM
From: chowder	Read Replies (1) \| Respond to of 206084

Re: GLBL ... >>> I think it has busted through some resistance, yes Mr. Bum? <<< Yes Your Dogginess! GLBL is showing where one might want to use the Momentum Band Strategy that Buck was asking about. When you have explosive upside momentum, you should want to let your profits run. I use a tool to help capture that price momentum and keep you in the trade as long as price wants to continue climbing. The set up for the Momentum Band Strategy: 1. Price must be breaking out to a recent price high on above average volume. I prefer above average volume to be at least 50% above average. The more the better! 2. Price must then move up about 20% in 2 weeks or less. (A little flexibility is allowed. It can be 17% or it can be 2 weeks and 2 days. No need to split hairs. It's the price move we should be focusing on.) 3. Once price meets the criteria for the Momentum Band Strategy, you stay in the trade as long as price continues to close above the upper band. You let your profits run as long as price continues to rise and stay above the upper band. The Momentum Band tool is the Bollinger Band setting with a 20,1 time frame, as opposed to the standard 20,2 setting. Selling Strategies for the Momentum Band Strategy. This depends on one's time frame for holding the position. Short term strategies should vary from longer term strategies, and the amount of profit in hand determines the flexibility one has at his or hers disposal. If one has around a 20% profit, then selling "PART" of the position would be prudent when price closes below the upper band. Selling the remaining part would then be done when price closes below the middle band, thus locking in most of the upside price momentum. If one has a 40% or more profit, due to being in the trade prior to the break out shown on the chart, then selling "PART" of their position would be prudent when price closes below the middle band. You can afford a little more flexibility due to profits in hand. One would want to sell the remaining position when price closes below the lower band. Closing below the lower band tells you the momentum move is over and the momentum is then to the downside.