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You don't need floor experience to have a good idea where stops will be
clustered.
Should be a cluster just above PH 6765 and a bigger cluster at PH 6760
(intraday all sessions chart). It is this second pivot which many will
consider to be the completed w2 correction to w1. The w2 PH should not be
taken out if this is a typical 3 or 5 wave decline in the A wave of the
corrective ABC. Another cluster should be just above PL 6730 which should
not be violated by waves 3-4 if it is a 5 wave decline. There will be others
based on Fibonacci retracements of the rally from 4/30 and as the
corrections more pivots and retracement points will collect more stops.
Knowing the rudiments of wave theory and Fibonacci retracements/projections
are important to understanding where stops will collect. Ditto for some of
the basic reversal and continuation patterns.
Edwards & McGee's Technical Analysis of Stock Trends is a good starting
place for those who seek understanding.
Earl
----- Original Message -----
From: Mervin Yeung <tinyeung@xxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Sent: Friday, May 07, 1999 10:59 AM
Subject: Re: Stops/Michael
> Hi RTs,
>
> I wonder how the locals know where the stops are. e.g. For those who
> are shorting Swiss Franc (June 1999), where are their stops supposed to
> be?
>
> I guess the largest cluster of stops will be at 6771. I may be wrong
> because I never worked on the floor. If any RT has a better idea,
> please let us know.
>
> Thanks in advance!
>
> Mervin
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