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Wayne wrote:
<< One technique I heard was to use the last 10 day highs for a top and the
last 8
day lows for the bottom of the envelope, then use a crossing of two full bars
below or above the channel for an entry long or short...crossing back into
the
channel was not reason to go the other way until you have 2 bars on the other
side of the channel. Any input anyone ? >>
This is a technique used by Jake Bernstein to determine the direction of a
trend. However, he indicates that one should also use some other indicator(s)
to confirm entry. As far as I know, Bernstein uses this technique only for
commodities. If you take his newsletter, or go to his web site for weekly
comments you will notice that he gives trend directions. All are based on the
above "indicator". Someone on this list once pointed out an article in Forbes
which indicated that Bernstein himself can't make money trading commodities,
and that anyone following his recommendations over a period of two or three
years would have lost several thousand dollars.
Jim
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