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> << 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 w as not reason to go the other way until you have 2 bars on the
> other
> side of the channel.
> 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.
Possibly, but when the market's a bottom, it's a bottom.....especioally a ten year
low....But yes, combine it with other indicators to be sure, but I think the
question was originally about setting up an MA and I was just joining in the
discussion...OTOH, there really is no sure thing....
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