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acli wrote:
> I am a novice trader who has been lurking here for awhile. I am wondering
> if anyone would care to express their "OPINION ONLY" (don't want to be the
> start of any wars) on what the meaning of going with the market is.
>
> Hi Allan,
There are probably many good answers to this. I tend to agree
with Dr. Alexander Elder and recommend his book "Trading for a Living". In it
he describes his "Rule of 5", which is simply confirming a signal with a chart
5 times the time frame of the signal. If you use daily charts confirm with
weekly (5 trading days); 1 hr. charts confirm with daily charts; 10 min chart
with hour charts; etc. I know some of these are not exactly 5 times but are
close enough. Basically if your signal is to go long a market, you would
confirm that the longer trend is up. This acts as a filter to eliminate some
of the short term noise and get you in the direction of the trend. Hope this
helps.
Good luck and good trading,
Ray Raffurty
P.S. I'm glad your not a lurker any more. {;-)
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