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Thank you, Kevin, for asking Neal these questions.
It is most useful.
Max
----- Original Message -----
From: "Neal Hughes" <neal@xxxxxxxxxxxxx>
To: <dlevels@xxxxxxxxxxxxxxx>
Sent: Tuesday, January 30, 2001 6:17 PM
Subject: Re: [dlevels] DUK D
>
> Hi Kevin!
>
> At 10:44 PM 1/26/2001 -0500, you wrote:
>
>
>
> >I guess I've assumed that the thrust necessary for declaration of a B&B
was
> >possibly less than that required for a DRPO (though I've often heard
mention
> >of the possibility of playing a DRPO once an associated B&B has been
> >completed). I do believe the definition of the B&B requires fewer thrust
> >bars than that of the DRPO.
>
>
> Nope! Same thrust requirement.
>
>
> >One of the reasons that I wrongly assumed the thrust here was adequate
for a
> >B&B setup was the appearance of the MACD. What am I missing here? Both
> >lines are well below zero and the faster one is well separated from the
> >slower one.
>
> What are you comparing it to? I don't have enough data bars to judge,
sorry..
>
>
> >Another reason was the appearance of the "thrust" on the monthly chart of
> >the Dow Jones Industrial Average from late 1998 to mid 1999. I believe I
> >recall that the "thrust" on that chart was considered adequate enough for
> >Joe DiNapoli to announce that the following "DRPO" was most ominous. If
I
> >were to compare the "thrusts" on that chart with that on the daily chart
of
> >DUK, well, I think you get my point.
>
> Daily and monthly thrusts are different, and thrust on one trading symbol
> is not thrust on another. You allow more slack on a monthly chart, purely
> because it's very difficult for a monthly chart to sustain the kind of
thrust
> you can see for 8-16 monthly bars (thrusting for 300 daily bars!)..
>
>
> >It could well be that what is necessary for thrust on a daily chart
differs
> >from that which is necessary on a monthly chart. I don't recall reading
> >that in the book or reading it in any other forum. Edify me if that is
the
> >case.
>
> It's been on the DiNapoli forums and is covered in private seminars.
>
>
> >You've gotten me all excited about this 90% success rate for B&B's.
> >However, if that is only for specific setups that are only likely to
occur
> >every few years, and require special dispensation not apparent to the
> >unannointed... :-)
>
> I don't want to quote an exact 90%, what I mean is it is a very good
> trading pattern. Just because trader "A" attains "x" percent does not
> mean trader "b" can do the same thing. I think I've said many times,
> these percentages are misleading. Each trader is unique.
>
>
>
> > > I would expect a move to .618, very
> > > probable.
> >
> >OK. Would you see that as enough information to trade it on that basis,
> >and, if so, where would your stop and profit target be? I find I learn a
> >lot more if this sort of thing is pointed out *before* the pattern plays
> >out.
>
> I'm not sure I'd trade this chart at all. I'm picky...
>
> > If you're looking for how to calculate
> > > the profit on a Railroad, A=low of 1/12/01
> > > B=high of 1/12/01, C=low of 1/16/01
> >
> >
> >I guess that means that you *would* consider that a RRT setup. Is the
high
>
> No, but if it were, that's how you would pick the data points for this
RRT.
>
> >of 1/12/01 considered to be the "B" of the RRT because it is the high of
> >1/12/01 or because it is *that*, as well as the low of 1/9/01, or both -
or
> >for some other reason?
> >
> >On that subject, do you feel that there is anything in the book to allow
one
> >to label A,B, and C for this RRT as you have above? I just dug back
through
> >the book again looking for definitive rules and came up short.
>
> The ABC points vary, based on the chart, it's covered in the private
seminars.
> I'm sure the book shows how to pick ABC points, RRT's are not any
different.
>
>
> >What would A,B, and C be if there were no shallow retracement such as on
>
> Yes, this could make it different. You may have to switch time-frames
> to discern the ABC in a RRT.
>
>
> >How is "R", the point of recognition determined? Especially if one
varies
> >the time frame in an attempt to make the RRT look right, it seems that
"R"
> >is a pretty nebulous concept. But, I've been wrong before. :-)
>
> Hehehe. If it's too confusing, don't trade it. "R" is when the RRT is
> recognized,
> if you don't know when that is, you haven't recognized it, so don't trade
it!
> "R" will be when the tracks are in place.
>
>
> >I anxiously await the answers to all these questions - or at least
> >clarification for why I'm full of s--- for asking them. :-)
>
> Nooooo! You're doing fine.
>
> -Neal.
>
>
>
>
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> dlevels-unsubscribe@xxxxxxxxxxx
>
>
>
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