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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: compradun who wrote (4037)	12/30/1998 8:26:00 PM
From: TraderAlan	Respond to of 4969

Comp, <What tapereading methods do you recommend? Up/Down vol? what time frame?> Using technical analysis allows you to develop a feel for "hot zones" in certain stocks. I watch the tape when price approaches these spots and look for increases in volume and volatility. From the TA, I already have an entry strategy in mind. If the tape confirms the expected action, I'll execute. On dips, its usually a question of waiting for the fire to die out a little. On breakouts, I want to see a sharp, enthusiastic move up and away from the prior resistance. My tendency is to believe big size on NYSE and disbelieve it on NASDAQ. All tape watching needs to be filtered by time of day. Obviously, different times have different natural characteristics. For example, I almost never trust breakouts during the NY lunch hour. <what time frame?> I've been holding a little longer the last few months than before the summer correction. My trades generally go about 10-15 minutes but I've actually held overnight a couple of times. Then again, I've been trading NYSE a lot more and that market isn't as psycho as its OTC counterpart. Alan