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At 08:46 PM 2/5/98 -0500, you wrote:
>
>Rod,
>
>I don't understand how you trade off a breakout from a retracement. Do you
>mean that you buy when the retracement percentage is hit?
>
>Kind regards,
>
>Yorker
In trying to be brief I'm afraid I didn't explain that too well. In an
uptrending market I look for a retracement that at least touches the 21day
EMA. When the market turns back up making a bar with a higher high and
higher low, I place a stop order the next morning at the previous days high
plus two to four ticks depending on the market. Same idea in reverse for a
downtrending market. With end of day data you only have the close to chart
for spreads. Therfore for spread trades I enter the next morning after the
second higher close from what is hopefully the bottom of the retracement.
Rod
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