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<DIV><FONT color=#000000 size=2>If it the order goes enters in the first 45 to
60 minutes after open, as I did this AM, that is supposed to happen quite often,
even with less frantic days than today. Stocks that I bought puts on had
slumped about as far as the would already by 45 minutes into the day. My
setups are on breakout of 9-12-7 MACD. This strategy seems to need
significant follow-up movement after the first hour.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT color=#000000 size=2>I'm inclined to switch strategy to what I
learned from a pro at Zeus Trading; fade the gap. I should maybe have gone
long at the point where what I was originally thinking of shorting had fallen
quite a bit in the first hour. Then take a small profit as it
retraces. Vice-a-versa for gap up stocks.</FONT></DIV>
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<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
Linda Swope
</DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
href="mailto:realtraders@xxxxxxxxxxxx"; title=realtraders@xxxxxxxxxxxx>Real
Traders</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Thursday, October 21, 1999 1:09
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> any suggestions for
whipsaw?</DIV>
<DIV><BR></DIV>
<DIV>I'm making really good progress on my daytrading method. I watch a
single stock all day, one that's naturally volatile. My target per trade
is 3/8 on a trading range day and 1/2 on a trending day. I average 4
trades a day.</DIV>
<DIV> </DIV>
<DIV>My setups are based on MACD's on three time frames. I won't enter
until all three agree. I use displaced moving averages for stops, trying
to give the price action a little room for "noise".. This simple system
works, with the exception of whipsaw days. Unfortunately, there are
plenty of those!</DIV>
<DIV> </DIV>
<DIV>I have been working on filtering my signals with breakouts. I won't
take a signal if the price is in the middle of the trading range, but instead
wait for a breakout above resistance or through support to confirm the
signal. I did this to help prevent whipsaw. </DIV>
<DIV> </DIV>
<DIV>But today I shorted a breakout, only to find I'd sold the bottom.
Then I bought a breakout to the upside, to find I'd bought the top. Both
breakouts just died. But if I had taken my MACD signals when they came
into unison, I'd have made my 3/8 targets.</DIV>
<DIV> </DIV>
<DIV>Am I missing something? Is it this very nervous market? Or is
it a matter of some days this will save me from more whipsaws and some days
this will cost me money? My goal is high probability trading and maybe
I'm almost there, but just got burned today...</DIV>
<DIV> </DIV>
<DIV>Any insight is appreciated.</DIV>
<DIV><BR>Linda<BR>Swope's Mountain Photography<BR><A
href="http://www.swopephoto.com";>http://www.swopephoto.com</A><BR><A
href="mailto:linda@xxxxxxxxxxxxxx";>linda@xxxxxxxxxxxxxx</A><BR>Climb the
mountains & get their glad tidings: Peace will flow into you as sunshine
into flower; the winds will blow their freshness into you & storms their
energy, & cares will drop off you like autumn leaves. John Muir 1838 -
1914</DIV>
<DIV> </DIV>
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