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

To: microhoogle! who wrote (83125)	4/16/2007 5:33:32 PM
From: RWS	Read Replies (1) \| Respond to of 206281

Here's something to add to your stops menu. In his book Van Tharp cites studies that show that a stock in an uptrend does not fluctuate over about 200% of its volatility as defined by the average true range. He suggests a stop at 250% of the ATR. That would be $0.90 on SLW. Often volatility will decrease near a top which results in your stop getting tighter as price approaches the apex. RWS

To: microhoogle! who wrote (83125)	4/18/2007 3:57:29 PM
From: chowder	Respond to of 206281

Sorry for the delay, I'm been vacationing. I don't know how far SLW can run. You've got resistance just above $12.00 where some traders would consider taking profits on part of their position and hold the rest in case price does break out. A strategy I've had success with is something I call the Momentum Bands. It's the Bollinger Bands with a 20, 1 setting instead of a 20, 2 setting. As long as the bands are rising in a northeasterly direction, and price continues to close above the upper band, I stick with the trade. You have upside momentum as long as price continues to close above the rising upper band. When price closes below the upper band, I always sell 1/2 of my position, therefore locking in some profits near the high. When price closes below the middle band, I sell the remaining 1/2 position. If I have a significant profit, I will sell when price closes below the lower band as opposed to the middle band. When price closes below the lower band, you don't have upside momentum any longer and should be out of the trade and wait for another buy opportunity.