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Tim, how about filter in the direction of the trend?
Paul Cote
Proeber, Tim wrote:
>
> 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
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