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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Richard Estes who wrote (9508)	2/20/1999 2:06:00 PM
From: bob wallace	Read Replies (1) \| Respond to of 12039

thank you for your reply, will have to calculate some % and take a look at them, I have always been a points kind of guy used to have your approach to opens and rarely traded before 10 am; however, for the past three weeks I have been trading Toby Crabel's opening range breakouts on NR7's. for trading this pattern I only use support/resistence as a mean of identifying possible limitations to the move - especially on shorts ... the only stop that makes any sense at all on an orb is the open.... I read many of your messages regarding systems developed for futures, so I took them to heart and added a 4-7 day volume screen to Crabel's seven day price range the results so far have been very encouraging - the selections have been very good, it is the trader that has been lacking not knowing the difference between a run and a reversal is, of course, the problem. I am absolutely certain that the speed of the move is very significant, and that a move that grinds itself out over an hour or more is more likely a reversal then a move that happens right before your eyes, in minutes. It is these moves in which I have extreme difficulty controlling my reflex fear reactions - I know that a very rapid move will reverse itself (at least enough to get me out at a much better price) because I have seen it so often - but every time I am in a trade and it happens, I seem to feel that THIS time will be different and the stock is headed for the moon... hence a need for some sort of rule that I can use to overcome the fear in regards shorts; I would say this: 1) though a long may well go to the moon, it is unlikely I would ever hold it that far, nor would I hold a short to zero 2) Zweig counters your argument by saying that as a short goes down, it frees up enough margin that you can short more of the stock and ultimately make as good a return as a long - I don't want to debate the math, but the agrument made sense to me regards Bob W