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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Esteban who wrote (9943)	1/2/1998 3:06:00 PM
From: Dave H	Respond to of 79477

Esteban, Thanks for the great description/explanation; makes sense to me. These guys are definitely tricky, as many of them do gap up day after the signal. Maybe something to look at is where do the maximum profits/minimum risk come from playing a PGDCEB -- what if you were to compare day 1 to all the rest of the days in the "bounce" -- of course, cats that break the AT on day 2 would be disqualified in the case of "waiting" for day 2 (that's signal day + 2) for entry, but how about those that don't? Or maybe this type of strategy isn't short term enough for the cats? Maybe I'll try giving you guys a hand in this research, especially since I don't have the time to really monitor trendlines intraday, but the PGDCEB really interests me.... -dave

To: Esteban who wrote (9943)	1/3/1998 6:37:00 PM
From: Doug R	Read Replies (2) \| Respond to of 79477

Esteban, This looks like a good place in the flow of tremendous work you and Ivan are doing on the PGDCEB to interject a possible (well, likely) solution to the early break of initial uptrend and the premature exit dilemna. So far the PGDCEB has been discussed on purely charting techniques alone. I would now suggest adding some technical analysis to the decision making process in the form of the intraday Bollinger Band/RSI combo. If a break of the price trend is accompanied by an oversold RSI reading while the lower Bollinger Band is being tested or violated, a hold would result while setting a stoploss that allows for only slight price deterioration from there (possibly 5% below the value of the lower band). For extra added aggressiveness one could consider adding to the position at two upticks from the low of the uptrend violation if the BB/RSI conditions are met. Doug R