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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Ron McKinnon who wrote (677)	9/26/1998 9:52:00 AM
From: LastShadow	Read Replies (2) \| Respond to of 43080

I have some email and pm's so here is where I think I will go with this. To Dave's and Ron's and few others general comments, getting in at the best possible price, or at least determining when a reversal is in place seems to be a good place to start. I will post something to the website tmorrow to illustrate this, but lets start with a couple timely examples. Trendlinin the lows from five days ago (that is, drawing a line between yesterday's low and the low five days ago) for AMAT shows that the best possible low for Monday would be about 24.75 and about 25 for Tuesday. If I wanted to get into AMAT I would set a limit entry then for 25. If theangle was steeper, then I wwould set it a couple of ticks above yesterday's low (which in this example is the same as Tuesday's possible low). What this line also tells us is that if the stock drops below that amount, then it is either starting to correct horizontally or reverse. Looking at LCOS, the trendline says it hasto stay above 35, and that would be the entry point. However, since LCOS closed at 35, and that was near the high for yesterday, if the stock doesn't open up on Monday, then it is probably in a local reversal. If it gaps open, you would just usethe Gap strategy to play it. Looking at AMZN, again for 5 days back, we get a Monday low of 104. Given that the close was 109+, andthat the previoushigh was 116.875, this is a possibility. If one is unable to watch the tick, and gfeels the stock is still uptrending, you would set the limit entry to 105. The reason for this is that you can then set an protective stop exit of 103.5 which is below the reversal threshold for the trendline and anly about 1.5 points (or less than 1.5 %) below your entry. lastshadow