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In a message dated 98-01-19 17:18:56 EST, you write:
<< 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 >>
I've traded this method as described in Stan Weinstein's book Profiting in
Bull and Bear Markets. It was my first intro to technical trading. He uses
buy stop orders to catch chart pattern breakouts. My best was when I saw a
very long term (which translates to very powerful) head and shoulders bottom.
I put in a buy stop order and forgot about it until a day or two later when I
noticed it had exploded to the upside. Classbook case. It was fun.
Jim
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