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-----Original Message-----
From: charles meyer <chmeyer@xxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Wednesday, April 29, 1998 12:55 am
Subject: Re: Sp RTers
It's a case of having to take them
>all and suffer a LOT of drawdowns before the real one comes along.
+++++++++++
The pattern of 1,2,3, is not a system which demands you taking it every time
you see it. There are many factors which the wise trader would want to
take into account, when this pattern appears. Just the same as with a
J-Hook, a Doji or Tweezer Top, etc, etc, etc, it all depends on
circumstances surrounding the formation.
I thought it interesting to note that no one on this forum brought that
particular pattern on the S&P to everyone's notice - bearing in mind the
legion of posts on the possibility of a top coming and the start of a bear
market. As I said, perhaps it is too simple a pattern for anyone to take
seriously. But those that were alive enough to see it, decide - because of
the gap down overnight - it was worth a shout, probably made quite a lot of
money per contract.
The fact that the market came back to the origianal support level (now
turned resistance) the very next day, was, possibly a trade worth taking.
Anyone who did, made a lot of money - without any sweat!!
Like any other pattern it might have failed. So what? You have to see it
and evaluate it first, before you decry it. I was just interested that
none of the people who are usually very quick to point out the possibilities
on the Spoo, did not think it worth pointing out.
As Tom said, perhaps today it will all turn bullish again. So what? The
original opportunity was there. Some actually saw it. Some actually took
it. Other people obviously thought otherwise. But I bet a few people
new to trading on this list will now be aware of the formation and
appreciate how support becomes resistance, when its broken. Etc, etc,
Charles, etc, etc.
Over and out, on that one!
Bill Eykyn
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