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Rule #1: always take profits when an advance or decline reaches a 162%
expansion of the previous advance or decline. In this case, ND9Z profits
would have been taken at 2403.75 which was the 162% expansion of
2584/2484/2567. Since such moves often indicate considerable strength, the
contract would then be sold short again at the 50% retracement with a stop
loss at the 62% retracement - the retracement should not penetrate the
previous 2484 pivot low.
Earl
----- Original Message -----
From: Gary Fritz <fritz@xxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxx>
Sent: Friday, September 24, 1999 11:05 AM
Subject: Trading limits?
> Has anyone ever done a study to see what the market typically does
> when trading collars kick in? I.e. what percentage of the time does
> the market reverse, or bounce and then head down again, or sit at the
> limit until the collars go off & then plunge again?
>
> I almost overrode my system and exited a very nice short position
> when the ND hit its limit at 11:30 ET this morning. But the NDX was
> still heading down, so I decided to follow the system and sit tight.
> Ooops. :-( It would be nice to have some statistical guidance in
> the future.
>
> Of course, the statistical guidance will probably be "it does each
> one about 1/3 of the time"... :-)
>
> Thanks,
> Gary
>
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