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

To: Jay Lyons who wrote (7023)	1/22/1999 4:55:00 PM
From: LastShadow	Read Replies (1) \| Respond to of 43080

Well, looks like everyone had fun today... lastshadow

To: Jay Lyons who wrote (7023)	1/23/1999 7:30:00 PM
From: eik	Read Replies (1) \| Respond to of 43080

Are you using their calculator? Jay: Actually I was referring to my personal Website... yes, I'm using that calculator. I believe the main fault of Classic Gap Strategy is the fact that yesterday's high and low are considered by default as support and resistance levels for today's opening. Just two examples: 1. Stock closed at yesterday's high. According to classic approach we should consider the open with +1/16 as the GAP up. 2. The low was hit yesterday at the market open and the rest of the trading day the stock price spent near the day's high. Do we need to get the open price below that old low to indicate the GAP down? I don't think so. I believe we should use some estimates for support and resistance levels instead of yesterday's low and high. How could we do those estimates? That's another question. I calculate both - classic and modified gap entries but usually use the last ones. No extraordinary methods, no automatic trading. Just one more tool. It doesn't take into account the dynamics of trading volume, it doesn't read what Greenspan said yesterday, or Judy, LastShadow, and Zeev are saying today. I do. It matches my trading style (a sort of "overprotection program"). One of my rules - use daytrading entry even when you make long term investment. I immediately move up my stop to protect commission. My broker is happy because I have many flat trades. If you use this rule and trade at least 200-300 shares you'll have a pretty big % of successful entries (>= 75% according to my rough estimates). To use Gap strategies you need some self-discipline. I often squeeze the 1st hour to 40-45 min. Moreover, on Friday looking at pre-openning bid-ask I bought SEEK at 9:29 and sold 15 min later. It was successful trade, but I have other examples which I wouldn't mention here to look smarter than I am.<g> I am still in a "learning mode". I like LastShadow's analytical trading style and think this thread is one of the best on SI. I'll be happy to get any comments, objections, and suggestions (e.g. simple but effective formulas for supports and resistances). P.S. Calculators on my site are just the samples. I post 3-6 stocks every day as an example of calculations. Everyone can hate me for trying to get some pennies for the work I've been doing to keep my site alive. Though I don't think EBAY, ONSL and other net-traders may consider me as the dangerous competitor yet.<g> P.S.S. I'm ready to e-mail these files to LastShadow for free expertise. Last, wouldn't it be a spam? May I do it? Good luck to all!