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My only thought to add here, is that while I do prefer to buy dips and sell
rallies as a rule, this particular idea with the CMO was more oriented
toward taking profits then finding support or resistance, which was the
original thought in this thread.
----- Original Message -----
From: Ron Scott <ron@xxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Friday, March 16, 2001 9:03 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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