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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (5385)	10/5/1998 1:11:00 PM
From: SE	Read Replies (3) \| Respond to of 44573

We should get a bounce here. TIKI -28, TICK -1300, PREM 4.00. All three relatively extremem readings occured within minutes of each other. So far, no bounce. If it does not bounce, it is all over and we are going a lot lower yet today.

To: Tom Trader who wrote (5385)	10/5/1998 1:11:00 PM
From: donald sew	Respond to of 44573

Tom, >>>>> since you mentioned down another 50 points--does this have to occur on a different day or if we were down say 250 points today <<<< As you know my system is based on time, more than a linear approach. It would be 50 points on the next day. >>>>>>>> When the momentum in a particular direction is very strong, the initial signal in the opposite direction is not reliable--which is why my system ignores the first signal when that happens. Also the signal back to the direction of the trend would likely be triggered with a lower threshold than if the market dynamics were normal. For example, the buy signal from the lows that we make may only be good for a very limited upside move and then the next sell signal would be triggered more easily than would normally be the case. Not sure whether this makes sense <<<<<<<<< Yes, I have just recently included such into my system. What you described is what I consider a "LINEAR APPROACH" which my system did not have during the JAN-APRIL strong runup, which burnt me. Since then I decided that it was important to include the LINEAR APPROACH into my analysis, but it is still secondary to my "TIME APPROACH". Seeya