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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: jebj who wrote (10653)	5/8/1999 1:40:00 PM
From: tuck	Respond to of 14162

Whoa, fellas! I was talking about two weeks not six hours! I was soliciting the opinions of daytraders because they have worked on short time horizons. As for the live feed, aren't there plenty of services that will give intraday charts twenty minutes delayed? I think that is all I'd need for my purposes. The IQC chart goes back more than a month using the hourly ticks. Daytraders would probably use a live feed and five minute charts, but I was just wondering what indicators and time scales to use for WINS-based CCing with a one month time frame on the calls. Sometimes that means two or even three transactions per play, as in my Edify example. I was thinking that perhaps that is too short a time frame for volume indicators to spot accumulation, but that is why you'd use the daily charts to pick the stock in the first place. A while ago I asked Herm for some chart interpretation help regarding PAIR. It had run up 20%, there were two weeks left to expiration on the nearest series, and I was thinking of writing at that point. Herm said it would keep going, so I didn't. Well, I didn't think to ask what timeframe Herm was using. If we look at PAIR six weeks later, he was right. But I would have been better off doing the short term CC, as PAIR gave back ground one more time before making its current run. It was this little incident that got me thinking about all this. Oh, it turned out all right. I made 15% or so in couple of months on PAIR, but I thought I could have done better playing weekly swings. I am currently looking at twice that return with three transactions in one month on Edify. Whatever, I hope the discussion continues for a while. Many of us here use a style somewhat different from Herm's. These styles have their pros and cons depending on what one is trying to do. Dave Wright discussed the merits of the one month time frame, while Herm is more of a long and deep kind of guy (bet you tell that to all the ladies, Herm :~}). I'm more in Dave's camp, and I thought it might be useful to develop a WINS TA system for that approach, is all. I'm thinking the optimal system might be a bit different. I hope I've made myself clear, now. More comment hoped for. Cheers, Tuck

To: jebj who wrote (10653)	5/8/1999 2:14:00 PM
From: David Wright	Read Replies (3) \| Respond to of 14162

jenj, Try putting together the combination of BB, stochastics and MACD. I like to use the upturn of the slope on MACD (not the signal line) as a confirming indicator for stochastics. It sort of puts a "bottom" under the false signals you get from stochastics. With stochastics, my favorite pattern is a sharp upturn off the bottom (below 20), cross over at 20, and a steep up slope, confirmed by MACD upturn. The most frequent use of RSI is to watch for divergences in behavior between RSI and the stock price pattern. If the stock is making a new high, but RSI is not, then you can expect a reversal. I find I spend more time trying to figure this out when in the heat of battle, than I want to mess with. I know that Wilder has 5 ways of looking at RSI...Tops & Bottoms; Chart Formations; Failure swings; Support & Resistance; and Divergences. The WINs approach seems to advocate a different approach to RSI..i.e., using it's postion above and below the signal line as an indicator of overbought/oversold. Herm, any comment? Also, one minute feed for daytrading isn't quick enough to beat the MM's. IQC's real-time feed is also 1 minute, but it updates instantly to current if you whop the recalc button. Top that off with a trade by trade streamer, instant execution, perfect psychological profile, $500,000 minimum..and you probably won't get skinned too badly daytrading. Lots of fun , though.

To: jebj who wrote (10653)	5/8/1999 4:48:00 PM
From: Herm	Respond to of 14162

I am presently using 1 min charts, volume, RSI and STOCKASTICS with three plots on it - slow, medium and fast - from a live feed into INVERSTOR R/T. The STOCKASTICS will show the direction change much faster and you then back it up with the RSI. If you use the RSI only, by the time it indicates a move, the move may be over! However, IF this is happening, you probably shouldn't be working with this stock. Stockastics seems to move much faster than the RSI and should provide a more nimble gauge when you have your finger on the enter key and are monitoring the price moves. Another interesting consideration for TA.