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Strategies & Market Trends : Zman Market Timing -- Ignore unavailable to you. Want to Upgrade?

To: Kimston who wrote (3779)	6/27/2014 9:59:31 AM
From: The Ox	Respond to of 15903

I appreciated what you've posted and I believe I understand the basics of your approach. I thought your post asked for others who saw things differently and that's why I chimed in. My main point was that I don't see the symmetry in that pattern to the same degree that you do, so I jumped into the discussion. Not to ridicule, like so many others here, simply to say I don't agree at this time....even though I could be the one who's wrong! As to downside stops, I tend to have very, very tight stops when I'm guessing that a stock, index or ETF/ETN is either rolling over or hitting support and should bounce back. In general, if I'm in the money with the trade, I'll move my stop above breakeven so as to make sure there's a gain if it turns south. If the trade goes south immediately, I'll have a max pain limit that was decided in advance of the trade. On occasion, in a fast moving market I'll allow for a slightly larger loss if I think the tape is showing the potential for a new support point developing but that is much more rare. It's hard to give you a set % as to my stop point, as each pattern has different factors but, like you, it's set in advance and if it gets hit, I'm out. In general, the downside is in the less than 2% range, occasionally set at 5% loss if there's reason to believe we need more room to prevent being whipsawed.