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> From: MR LYNN G <MRLYNNG@xxxxxxx>
> To: jghutchison@xxxxxxx
> Subject: Indicators
> Date: Friday, January 16, 1998 9:17 PM
>
> In a message dated 98-01-15 03:38:23 EST, you write:
>
> <<
> I use Fibonnacci support & resistance and projections, Bollinger Bands
with
> 2 SD's on a 21 bar MA, 21 Bar and 50 Day MA's. These are ranked in
order
> of performance.
>
> You should use a combination of indicators that are independant of each
> other. When the signals confirm, Bingo, push the button to execute the
> trade.
>
> In my opinion the Fibonnacci's are the most powerfull indicator
available.
> Learn to use them, manage the trade, and you can trade successfully and
> beat the street.
>
> If you want to follow the herd, use the MA's. >>
> ****************************
> Jack:
> I agree with you. Have you studied Joe DiNapoli's work?
> What do you mean, when you say "when the signals confirm"? I look for
> confirmation in my indicators that the retracement is ending but I don't
use
> indicators to exit at the fib projections.
> Good Trading.
> Lynn
Lynn,
A typical trade setup is as follows:
After calculating the Fibonnacci support levels, I'll await the Alert from
my computer. On alert I immediately display a real time 5 minute bar chart
with the Bollinger Bands. Upon excursion outside of the Low Band and
subsequent Close within the Low Band I go long. I will maintain a very
tight stop, often within a few ticks such as the previous bars' low.
Depending on market conditions, I will exit on the Fibonnacci projection or
a trailing stop. At the very least the price action will stall at the
Fibonnacci projection. I take my cookies while they are passing the plate.
I normally carry no more than three or four positions at a time and I watch
them very closely including paying attention to the stock and S&P 500 price
action, volume, news, and sector behavior.
I have never had a shortage of attractive trading oppurtunities. Of course
they all don't work out. Most do. Some do extremely well.
I'm not familiar with DiNapoli, or his work. I'v found that most of the
gurus offer a ton of BS and little else. The most usefull book I've read
is the Nature's Pulse user manual. The Nature's Pulse software is an
incredibly good training tool. Kasanjian won't tout it here, but I will.
If your are not familiar with it, ask for a demo.
Good trading,
Jack Hutchison
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