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 : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: SpongeBrain who wrote (25091)	1/6/1999 6:56:00 PM
From: Blake Turner	Read Replies (2) \| Respond to of 79243

Dan, I have some systems set up that trade the narrow range you are talking about. Look at ranges that are the narrower than the previous 3 days, These are NR4 days. Place a buy stop one tick above the high on the day before the NR4 day. These plays are very short term and are good for 3 to 5% gains. They are VOLITAL so watch out. I am attending Doug's seminar in Florida and I hope to tie the 56er work into some of my own. Hope this helps. Blake Turner

To: SpongeBrain who wrote (25091)	1/8/1999 11:32:00 AM
From: ivan solotaroff	Read Replies (1) \| Respond to of 79243

Dan, I think you've noticed a statistical anomaly. Trading ranges, at least in NASDAQ stocks, are the aegis of the market-makers, who are the people all buys and sells are made from/to. They make some of their money, like bookies, from the difference between the bid/ask, and therefore, they typically tighten ranges when order flow is good. It doesn't pay for them to have a 4% spread between bid/ask if they're selling a large number of shares. When they tighten, it can sometimes be an indication of a move, but it can also just be them trying to summon up sales. Look at the MMs as salesmen, and the b/a spread as one of their tools, and you'll realize that there are many reasons why spreads are set as they are. I don't know if that addresses your other questions about volume. Ivan