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My 2 cents worth. I would set the exit at 27 15/16 which is one tick below
the 7-11 close and coincides with the 50 day ATR. If your trade is
correct, I would expect to hit resistance (and take a profit) at 35 1/2.
Then the question would be at what point you would execute re-entry. If
the exit is too far from entry for your risk/reward level, then I would
pass the trade.
What is your time frame, John? If short term (1-3 days), look at the
relationship of the low/close of 5/24 to the close of 5-30. This is
something I have been working with that has been profitable, but I have not
extensively tested. If interested, I will share with you off this list.
I write this to counter a comment that was posted yesterday that "real"
traders don't discuss trades. I will gladly discuss any trade (winners and
losers).
Al Taglavore
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> From: John Manasco <john@xxxxxxxxxxx>
> To: Metastock List <metastock@xxxxxxxxxxxxx>
> Subject: Good Knight
> Date: Thursday, July 13, 2000 7:49 AM
>
> I'm considering a position in Knight/Trimark symbol NITE. The stock and
> sector both seem to have bottomed (may be a big assumption) and are
turning
> up. It closed yesterday (7/12) at 30 11/16. It crossed significantly
above
> its 10 day ma but is still below the 200 and 50 day ma although it is
> bumping up against the 50. The 50 day ATR is about 2.75. If I enter at
> yesterdays close of 30 11/16 and only want to risk 2% on the trade then
I'll
> put my stop at 30 1/16 which is only 5/8 away from my entry. If I use the
50
> day ATR the my stop will be about 27 15/16. If I use the near term low on
> 7/10 of $27 I would place a stop at 26 15/16. So where would you place a
> stop? What is a reasonable risk profile for this stock?
>
> NITE's most recent high on 6/02 was 35 1/2 so what could I expect to make
on
> the trade?
>
> Comments requested
>
> John Manasco
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