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Ron:
The idea of different parameter lengths isn't new. It is the basis of the
macd and Curtis Dahl used this idea in his book about half a century ago.
The concept was in front of our noses and we didn't realize it until Joe
Duffy pointed it out.
Thank you Joe Duffy for sharing your knowledge and experience.
Lionel Issen
lissen@xxxxxxxxx
----- Original Message -----
From: "Ron Scott" <ron@xxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Friday, March 16, 2001 8:03 AM
Subject: RE: Profit Stops
> Joe-
>
> That was a most informative post. I had never even thought of using a
series
> of oscillators to calculate support and resistance levels. I have always
> just been focused on overbought/oversold and divergence. Thanks for a
great
> idea.
>
> Ron Scott
>
>
>
> -----Original Message-----
> From: owner-metastock@xxxxxxxxxxxxx
> [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Joe Duffy
> Sent: Friday, March 16, 2001 5:44 AM
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: Profit Stops
>
>
>
> The idea of Fib targets is in essence the same as retracements. That is
that
> ANY 3 points (that is any combination of high or low pivots) MIGHT be
> divisible in the Fibonacci ratios. It is in essence a division of any
space
> delineated by any combo of swing highs and lows. If you know 2 points it
is
> simple math to forecast the third.
>
> That's a lot of potential choices you say? Well, your right. That is why
in
> my opinion you can't just use one thing to calculate your potential
support
> and resistance. Your chances increase exponentially if you have two or
even
> three measures involving different high and low pivots and/or ratios
> yielding very close to the same target area. A lot of work you say? Well,
> your right again. How to make it simpler?
>
> First, after you become familar with the techniques, you can kind of
eyeball
> the charts and spot potential
> setups. Like wise, you can see where nothing is likely to be close. That's
> just experience.
>
> However you might be just as well served to forget this stuff. It works,
if
> you do the work and have the experience. But if you want to go a shorter
> route, you might try just eyeballing an oscillator, something like say the
> Chande momentum index. Take a look at where tops and bottoms usually form
in
> your market on average. Try 2 or 3 different oscillator lengths together.
> You will be able to draw a pair of horizontal lines on the chart which
will
> be roughly coincident with levels where swings tend to bottom out or top
> out. Hence you know the level where, in a general statistical sense, any
> swing move is getting long in the tooth. This is your profit taking area.
>
> The other thing to note is Fibonacci is not as easy as it once was. In the
> mid 80's when I started using Fibonacci relationships, they hit turns
> fantastically with near 90% reliability. Unfortunately, I didn't have the
> confidence or the other trading skills necessary to take true advantage of
> what I had discovered. It's definitely not as easy now, as more people are
> armed with the same information. Even worse for the Gann Square of Nine,
> which was an unbelievable tool until it became part of more main stream
> technical analysis.
>
> The other piece of advice I might give is "think outside the box". Just
> because it is written in a book does not mean it's right. And other times
> what is written, may not be the full extent of potential for the concepot
or
> idea discussed. If you are attracted to the type of analysis that is
> different then say programming on TradeStation, you need to bring your
> imigination with you on your journey.
>
>
>
>
>
>
>
>
> ----- Original Message -----
> From: Ron Scott <ron@xxxxxxxxxx>
> To: <metastock@xxxxxxxxxxxxx>
> Sent: Friday, March 16, 2001 1:17 AM
> Subject: RE: Profit Stops
>
>
> > Neal-
> >
> > Just wondering why the Dinapoli book is not available on Amazon, where
> most
> > trading books are available, along with a wide range of reader reviews?
> It
> > is always nice to get a variety of opinions before plunking down $160
for
> > yet another TA tome.....
> >
>
>
>
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