Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Lizard King's Trading Swamp -- Ignore unavailable to you. Want to Upgrade?

To: Willsgarden who wrote (5712)	4/3/1998 4:06:00 PM
From: Paul Viapiano	Read Replies (1) \| Respond to of 7396

Bought RCMT near the close for 26 1/2...two very low volume days with a nice pullback...expecting this to pop to 33 soon. Any opinions? Remember this strong workhorse from a couple of weeks ago? Look at the chart... Paul

To: Willsgarden who wrote (5712)	4/5/1998 12:50:00 PM
From: TATRADER	Read Replies (4) \| Respond to of 7396

Bill, looking for reversal of SIII in the 6.50 area...If I am around on my computer and see it happening, I will pounce...But my odds won't be good the way I hop in and out from regular work to trading... The Directional Movement is defined as the portion of today's range t hat is outside of the previous day's range...It checks whether today's range extends above or below the previous day's range and averages that data over a period of time..Right now I use a 14 period directional indicator...When a trend proceeds in a healthy manner, the spread between two smoothed Directional lines increases and ADX rises..ADX declines when a trend reverses or when a market enters a trading range...It pays to use a trend following method(MACD Histogram,Pring KST) when ADX rises and not when ADX declines.... Two of the best day traders in the country are strong proponents of the ADX indicator...Maybe you have heard of Larry Connors and Jeff Cooper...You might say I am a disciple of those two..I plan to buy Larry's new trading manual "Advanced Trading Strategies" soon...Cost is $150.00 and $6.00 for postage....Chapter 20 of the book discusses the 15 minute ADX breakout Method...I probably won't be able to use it since I still have an end of day system for my Technical Analysis, not a real time software package... Regards, Mark P.S. To figure out reversal areas, you need to use a combination of indicators, 21, 50 day moving averages, Bollinger Bands, Envelope channels, Fibonacci Ratios, Gann-Retracements, pattern measurement, and overhead studies...If I combine all of these, they tell me a story at the best point a stock will reverse itself....Keep an eye too when a stock refuses to make a lower low for two days in a row(especially when it is at the lower part of an envelope channel)...Day three many times the shorts get nervous and cover, while the Lizards of the world are ready to pounce on the long side...

To: Willsgarden who wrote (5712)	4/5/1998 3:06:00 PM
From: TATRADER	Read Replies (1) \| Respond to of 7396

One other comment Bill on ADX...When a stock is in an uptrend, ADX should continue to move up....I will stick with a stock even when the ADX remains the same for several days in a row...It just means the stock is resting....However, if an uptrending stock is not in a flag pole formation, and ADX goes down, I will bail out of the stock..It is warning me that a reversal is at hand.... Example: OBJS...ADX has been decreasing,that tells me there is a good chance that this stock will correct to the 2.67 level that I gave to Lizard...(this is an uptrending stock since +D1 is greater than -D1) I compiled the pullback area with the indicators I mentioned to you on a prior post....However, when a stock is in a pennant or flag formation the ADX may go down for several days in a row...But then the stock spikes another pole, and the ADX starts its ascent again...