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In a message dated 10/21/1999 1:37:15 PM Pacific Daylight Time,
lswope@xxxxxxxxxxx writes:
<< 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. >>
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I have been working on a method of verifying the major turns in the S&P for
daytrading. I do not forecast ahead of time but can confirm a Major Hi or a
Major Low within a few 1 min bars. The point is that a Major Turn creates a
move of at least 10 S&P points in the opposite direction 90% of the time. It
would allow you to know when to reverse your position if your breakout fails.
You should be able to convert your losses into profits.
I have never daytraded stocks but Linda, if you could send a chart of your
stock with the times and prices marked, I will see if my method works on your
stock. You must identify the time and price of every turn, not just the
Daily Hi and Low, because I must verify each attempt at a high or low in
order to differentiate between the Major Turns and the false ones. A 1 min
chart is preferable but if this is not possible, the shortest time frame is
best. Since this takes a great deal of time, I can only do 1 chart but I
will share the results with everyone.
Lynn
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