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Paul,
I trade the DM and Jy that way and it is very successful when combined with
a filter. I have not been
able to duplicate the results in other markets.
Interestingly, this concept was the "Sample Trading System" included in
System Writer by Omega
years ago. It was several years before I investigated the concept because
it seemed to simple to be of much use.
Ed
-----Original Message-----
From: Paul Cote <cote@xxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Monday, January 19, 1998 6:19 AM
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
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