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I've position traded for many years but am still getting my feet wet in day
trading. I still stick with my old habits of reviewing a full set (DJIA, DJTA,
DJUA, S&P cash, Nyse, Nasdaq, Ru2000, TBond) of weekly charts each weekend and
noting key support, resistance and trends. I do the same thing nightly with same
set of daily charts + current SP, ND, & US. During day I'm using a 30 min and 5
min on the S&P. The 30 minute includes key S&R for both 30 min and daily time
frames and the 5 min includes S&R from 30 min and 5 min time frames.
The 30 min is what I trade from and the 5 minute is what I use to watch for
trend changes. My channel and fib work seems to be much more reliable on the 30
min than on the 5 min. The 5 min seems to generate many false signals. For
example this morning (Tuesday): the rally extension from Monday close was a
1.612 extension of Monday's closing rally which would ordinarily indicate a high
probability of a 3rd rally to upside once a .38 retracement was completed.
However, the whole thing was a setup for a move to downside. The 30 minute
continued to trade in a wedge.
Also, I've been watching opening gaps with a great deal of interest as the
opening range seems to be reversed after first half-hour of trading with the
reversal running into lunch followed by another reversal which runs in the
direction of the opening breakout.
Earl
-----Original Message-----
From: Neil Harrington <njh@xxxxxxxxx>
To: ATI List <ati@xxxxxxxxxx>; omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
Date: Monday, June 01, 1998 11:24 AM
Subject: Some S&P Ideas & Questions
>I have listed below some points that I and others consider when day trading
>the S&P futures contract. I would appreciate you sharing your comments about
>these points and adding other principles, rules of thumb, cardinal rules,
>etc., that you couch your S&P day trading in. These are in no particular
>order.
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