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Nice to meet you Alex.
I do not like big overnight gaps, but they are becoming more and more the
norm on the SP as well. The reason I do not like them is that a large gap
opening leads to high volatility for the first hour or so and I will not
trade if the bars are either too big or if I see big increments (50Pts)
between tics. That is the only problem I have with gaps. I do not care
about the opening level as I treat each day as TOTALLY independent from the
day before or any other day. I do not care at all about the trends on the
longer term charts etc. As far as I am concerned my "window of vision"
starts at 8:30am and runs up to the current time (as long as that is before
3:15pm of course). Today as a new day.
Range bound days are a pain but I will trade them until I know we are in a
range, then I will stand aside until we get out of the range, if at all that
day. I will even count a large range (1000pts+) as pretty untradable
because I can not believe there is any momentum to a move that keeps us
going sideways. As I use really tight stops I need to know there is a high
probability of momentum behind the move, else I know it will be a costly
flirtation! So to answer your question I guess I err on the side of sitting
on my hands.
I hope that helps a little.
Best wishes to you.
Simon
-----Original Message-----
From: Alex Vozzo <voz@xxxxxxxxxxx>
To: UKTrading@xxxxxxxxxxxxx <UKTrading@xxxxxxxxxxxxx>
Date: 19 August 1998 09:29
Subject: GEN:Enter on Stops?
>Hi Simon,
>
>I have been reading your postings to RT with great interest.
>
>Like most traders, I am still working on my methodology which is also
>based on trading retracements intraday. Due to the time difference, I
>am limited to trading the Aussie SPI. This does not have the liquidity
>of S&Ps but can trend on occassions.
>
>I have two major difficulties which reduce significantly the number of
>opportunities - overnight gaps and range bound markets. Without
>revealing your system is it possible for you give me some guidance as to
>how you handle these situations.
>
>Also, would you be able to send me a copy of your chart for last Friday.
>In one of you posts you stated that you had 4 trades on that day.
>
>Simon, I'm simply trying to expand my opportunites, not learn your
>system.
>
>Your help if possible would be greatly appreciated.
>
>Kind regards,
>
>Alex Vozzo
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