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

To: Dr. Stoxx who wrote (2579)	1/11/1999 2:10:00 PM
From: Charles Kalb	Read Replies (1) \| Respond to of 39683

Thomas.......The fact that you sold your DURA last Thursday seems to indicate that you felt at the time that there was more downside risk than upside. I think I would have sold also at that time had I been long. This is two trading days later. In your past posts you indicated you don't have a charting program on your computer (Macintosh/software limitation?). I heard you talk trendlines but not error channels. I find standard error channels extremely useful. It's amazing how the price bounces off the plus and minus 2 standard deviation lines. By definition, when a stock is moving up regularly in a standard error channel, as DURA has been since mid-October, bouncing between the upper and lower bands, each new high breaks through the resistance of the previous peak and each new low is higher than the previous low. There is no other way to get up the channel in a regular manner. In general, I normally would not short a stock that is rising in a STEEP channel because the risk/reward is poor, but DURA has exhibited very predictable behavior IMO for five consecutive swing trades in this modestly rising channel. There are other confirming indicators besides stochastics and I believe the Elder's MACD will give a SELL by day's end. Thought this might be of interest to those not familiar with channel analysis. DURA down about 2.7% as I send this. Charles