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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Douglas Webb who wrote (6369)	1/10/1998 12:38:00 PM
From: Electric	Read Replies (1) \| Respond to of 14162

Doug, Thanks for that explanation. All that is lacking is being protected from gap-downs. I plan on following a few stocks using your tool there and seeing what results. How has the author done using this tool, or others that have used it? I think there is more to buy/sell than mere closing prices or current price in relation to previous days prices, as you explained that the bars can be made intra-day or could result from moves within one day especially if the stock is volatile, like CPQ. You put alot of work into trading and it shows.. Electric

To: Douglas Webb who wrote (6369)	1/10/1998 1:05:00 PM
From: rocklobster	Read Replies (1) \| Respond to of 14162

Douglas, The big drop on the TXN chart is due to a stock split that happened. See the corresponding candle chart. I am totally new to the site in reference but find it very interesting. I have been trying to trade the Oil services sector and looking at my favorite volitile oil service stock, FGII, I could have made twice as much money shorting the stock as I have going long. I am currently down in long positions now. I am going to start an account with 10k and try trading a stock using this method. I am also concerned about when this method may be inappropriate. Let's follow this one and test it with actual trading. Good Luck to all. EOM Richard

To: Douglas Webb who wrote (6369)	1/10/1998 10:08:00 PM
From: Pierre	Read Replies (1) \| Respond to of 14162

The chart is somewhat more complex than 'if the stock closes above it's previous 3 days trading', and each bar does not represent one day's trading. Once a bar is drawn, there won't be another bar drawn until the stock closes outside the range of the first bar. If the stock closes above the first bar, the new bar is white. If the stock closes below the first bar, the new bar is black. Once you have three white or black bars in a row (medium sensitivity) a new bar of the opposite color won't be drawn unless the stock closes above/below the previous three bars. It seems to have some of the characteristics of a point and figure chart - though I don't think p&f has price as vertical axis, and p&f uses hi and lo, not closing, prices. Thanks for the web site. I need to develop a system that overcomes my bias for long vs short plays. Pierre