Re: Rectangle Stop Loss

[leo.timmermans.lt@xxxxxxxxxxxxxxxx]

Hi,

Thanks for your answer. This was my initial tought too but I discarded it for
two reasons.

1-) the distance between the two trendlines often amounts to a respectable
percentage which
is often too much to loose considering the 2% rule

2-) if you calculate the reward (or risc) factor with such a stop loss
position, the reward factor is
allways a little bit less than one (price objective =< stop loss) and thus,
considering a reward
factor has to be >= 3 (according to the books ...) such a breakout would never
be tradeable ....

Any suggestions ???

Placing the stop loss just beneath the lower trendline only pays when you enter
at this trendline,
in my opinion.

Regards
Leo






gcwallace@xxxxxxxx@INTERNET@xxxxxxxxxxxxx on 11/17/2000 04:27:38 AM
Please respond to metastock@xxxxxxxxxxxxx@INTERNET
Sent by: owner-metastock@xxxxxxxxxxxxx
To: metastock@xxxxxxxxxxxxx@INTERNET
cc:
Subject: Re: Rectangle Stop Loss
Leo:

Look for a support level between the upper and lower trendlines.  If it
is not too big of a risk, an even better stop level would be just below
the lower trendline, which offered solid support previously.

Hope this helps.


----- Original Message -----
From: <leo.timmermans.lt@xxxxxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Tuesday, November 14, 2000 2:20 AM
Subject: Rectangle Stop Loss

> Hello,
>
> I'm wondering where to put the stop loss when trading an upper breakout
> from a rectangle (long-side of course ... ). Is it below the low of the
> latest bar before the breakout?
>
> Thanks
> Leo