|
PureBytes Links
Trading Reference Links
|
Leo,
I use whole numbers for my targets because I believe specialists
tend to try to hit the next higher whole number to drive out the limit
orders. That means I have an edge when my target is a whole number.
Similarly they also tend to try to hit the lower number to shake out
the stops. Therefore, I don't use whole numbers for my stops.
Instead I set my stops at xx 3/4. My theory may not be true, but I've
done it that way for years <G>.
JimG
-----Original Message-----
From: Leo Karl <leokarl@xxxxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Date: Sunday, November 15, 1998 8:10 PM
Subject: Re: Stock Trading Building Blocks
>Jim,
>I would be interested in your reasoning behind the use of "whole"
numbers
>(for targets and stops) as opposed to the fractional numbers that
some
>traders advocate.
>
>Esthetically, I think whole numbers are kind of neat, if only because
many
>people avoid them. But I'd be interested in other perspectives.
>
>Thanks for all of your wonderful sharing.
>
>Leo
>
>Jim Greening wrote:
>
>> Aongus,
>> The answer on targets is purely technical. For targets I use
>> either a whole number just under the 52 week high or a whole number
>> just under the top of an intermediate or long term channel.
>
|