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

To: BuddyW who wrote (9851)	3/15/1999 2:44:00 PM
From: Michael Watkins	Read Replies (1) \| Respond to of 12039

Buddy, Hey thanks for that, you've given me a good idea. I'll try to write a scan that identifies a string of multiple inside days and tests them for reversals. Some of my software allows for backtesting (WOW). I'm not planning on trading on inside days, just looking see if there are instances where this pattern adds useful meaning. Best of luck in your pursuits. You should come out of the wood work more -- posting is a good way of exercising your brain and I think everyone around these parts is looking to contribute and assist. You don't need to feel you have all the answers or even some of the answers! Gosh, I sure don't. The only thing I fear is leading someone astray involuntarily. But I believe each is his own master and must chose what to follow and what to discard. Follow a trend! Sell in times of adversity. Better yet, figure out where you are going to sell (or close your position) before you place the buy order (entry). Anyone feel free to correct me if I'm off base, but I think most people should spend far more time determining how/when/why to get out of a trade rather than spending 90% of time on "entry". Another shocker for me was to expect more failed trades than you'd imagine, and you can still do well. It all comes down to having funds to play the game yet another day. Everytime I allow myself to forget that rule I do regret it. Cheers Michael

To: BuddyW who wrote (9851)	3/16/1999 12:54:00 AM
From: Lenny Rosow	Respond to of 12039

Buddy/Michael - Here is Robert Miner's inside-day trade entry set-up rules. By the way, he calls this a trend-continuation entry not a trend-reversal entry. "(1) Only enter in the direction of the trend. The direction is determined off the last pivot reversal considered to be the start of a new trend. (2) To enter a long position, as long as the low of the day prior to the inside-day has not been exceeded, on the day following the inside-day, buy at one tick above the high of the day prior to the inside-day. (3) Place the initial sell stop one tick below the lower of the low of the inside-day or the low of the entry day." If you can stomach a wider stop than maybe use the low of the day prior to the inside-day. This trade is valid only for the day following an inside day! If the high of the day prior to the inside-day is not taken out then the trade is voided and wait for the next set-up. Everything is of course the opposite for a short position. I wonder if anyone can test this out on a program like Metastock. If it can be done than I would love the formula - Lenny.