|
PureBytes Links
Trading Reference Links
|
Sometimes (about 50% of the time), there will be a fake in the opposite
direction of the eventual true breakout. How to filter ? . ? . ?
Tim
> -----Original Message-----
> From: Paul Cote [SMTP:cote@xxxxxxxx]
> Sent: Monday, January 19, 1998 5:15 AM
> To: RealTraders Discussion Group
> Subject: Breakout from congestion
>
> A relatively simple method of trading the market is to trade a
> breakout
> from congestion. A congestion is defined by a market that was
> trending
> but then begins going horizontal for a while. The confines of
> congestion are contained by two horizontal lines, one above and below.
> When the market closes above or below these lines, a position is taken
> in the direction of the breakout. The exit from the position is when
> the market reverses so a trailing stop would be the exit mechanism.
> Has
> anyone tried this trading method?
>
> Paul Cote
|