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<DIV><FONT size=2>RT:</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>My ema's are not offset like BW's, if I get the program
language straightened out I will have that. Also, his formula uses
simple moving smoothed offset average. If you decide to make it an exponential
offset moving average, you have modified it, I am sure it would
work. </FONT></DIV>
<DIV><FONT size=2>When the alligator closes up or intertwines, you are in
congestion. You can choose to exit or hold contract till
wave five. This is where the strategy comes in. If you decide
to trade wave four on the daily chart or any chart you will need to go one chart
smaller. The reason for this is that we are avoiding the b wave
and from my limited experience this seems to create the false signals in
indicators. Now in his explanation of waves and by most Elliotticians, you
have several levels of waves, but the essence of it is that wave (a)
& (c) has five waves within them at the next level down. Wave b next
level down is wave abc, therefore we would have to go down one more level to
trade that a and c level as 1 thru 5. I use only daily,
hourly, and 10 minute charts. Someone else will have to tell me about
charts above or below that time frame. Example: Now Bw states that
waves change on charts approximately five times larger to the next
wave.</FONT></DIV>
<DIV><FONT size=2>Daily---------------------------------------------------wave
I-----------------------------------------------------------------------------wave
2</FONT></DIV>
<DIV><FONT size=2>hourly----wave 1--------------wave 2----------------wave
3---------------------wave 4------------wave 5----------------wave
a-----waveb------wave c</FONT></DIV>
<DIV><FONT size=2>10'
chart-1-2-3-4-5 a-b-c
1-2-3-4-5
a-b-c
1-2-3-4-5 1-2-3-4-5
a-b-c 1-2-3-4-5</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>From my experience, an BW is not clear hear, but indicates he
avoids wave abc as a trading group. I have found wave b will give you a
signal just for the market to reverse on c and ussually you will loose some
money on it. The above chart shows how you can avoid wave b by moving to a
different time frame or you can wait it out for the correction to be complete
before entering on the next impulse wave. </FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Can you trade an make money with the alligator only.
Yes. Can you make more money using BW's other methods in conjunction with
the alligator, even more so. As he states we are going thru a learning
process and the name of the game is to stay alive while we
learn.</FONT> </DIV>
<DIV> </DIV>
<DIV><FONT size=2>This explanation of the waves leads into the use of
MACD. Let me state that MACD on most software uses the close and BW uses
the middle of the trading range of that day. I use the close. As
I explained up above it depends which time frame your trading to show which wave
your in. You see if you want an exact entry at almost the perfect
bottom here is how to do it. BW does not go into this
extensively, but suggests that this is what to do if you want a perfect entry or
very close to the exact turn spot. I guess he figures it is to much
trouble to do as a whole, I personally like it very much.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>The two things MACD tells us is when wave three, four,
and five is coming to an end. Now if we know when these end we know where
wave one, four and five begin. Now if we use the alligator for
entry on the chart your trading you will give up more of the market for
entry. So here is how we trade it. He explains that wave three is
the highest on his MACD and then if it comes down and not thru the zero line and
the price makes a equal or higher high and the macd does not this is end of wave
five and then when macd goes thru the zero line that wave four is complete
and will turn very shortly. So to get the beginning of wave five, you
simply wait for macd to cross zero, you can also look for a MFI, but at that
point switch to a smaller chart like hourly, if your trading daily and look for
the hourly to confirm the fifth wave and then use alligator to get
contract. You could even go to the 10 minute and you would be in as low as
you can get to a bottom or top trade. You use this same method for exiting
a trade. </FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>MFI is one of the most powerful tools I know, I use a
calculator, but after you do this awhile you can just look and see most of
them. MFI=range of the day divided by volume Now when a day has 10%
more volume then previous day and a lower MFI it is considered a squat
day. Time to get ready the market will be turning most of the time
within 1 to 3 days. </FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Yes, one more answer to a question. When trading
alligator only, you trade in direction of larger chart till it gives reversal
signal. When you get to macd, and alligator you have lots of options on how you
can trade.</FONT></DIV>
<DIV><FONT size=2>Also, here is a free site that offers daily trades and if you
sign up for his e-mails you will get swing trades and day trades all for
free. They are based on Elliott Wave, The style is somewhat similar
to BW, but he trys not to divulge all as he wants you to subscribe to his other
services. But this might help some as it visualizes. </FONT></DIV>
<DIV><FONT size=2><A
href="http://www.directmarketingpro.com/spierce/whatsnew.html";>http://www.directmarketingpro.com/spierce/whatsnew.html</A>
I have no connection to this site, or any services, just a trader that is
finnally putting it all together with BW after trying every indicator, news
letter and many books of trading to no avail. BW just made it click to
me.</FONT></DIV>
<DIV><FONT size=2>charley</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>I think that answers more of the questions, and probably
created some more.</FONT></DIV>
<DIV><FONT size=2>Happy Trading</FONT></DIV>
<DIV><FONT size=2>charley</FONT></DIV></BODY></HTML>
</x-html>From ???@??? Mon Dec 20 11:54:49 1999
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From: "Brent" <brente@xxxxxxxxxxxx>
To: "<realtraders@xxxxxxxxxxxxxxx>"
<realtraders@xxxxxxxxxxxxxxx>
References: <00e901bf4aaf$1fa4f5e0$ce5c36cf@xxxxxxxxxxxxxxxxx>
Subject: [RT] Re: CL_Re: Re: RT] As An Aside re. Mechanical S&P Trading Systems
Date: Mon, 20 Dec 1999 07:41:04 -0700
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Status: O
Hi Karl,
I already answered another post about this, I will paste the info below.
Brent
{Some answers to your questions (to the best of my understanding).
Does this mean bars that end on the even hour? ***Yes.
If so, would they necessarily be of 60 minute durations? ***Any length of
time can be used but the division will still reflect the natural hour.
And, what would you do about the first 30 minutes of S&P trading? ***That
would show up as one bar on a 60 minute chart as would be any part of an
hour. The next hour on that 60 minute chart would be a full hour.
> Brent:
>
> Now I know what natural fruit bars are, but natural hour bars?
> Ya got me !
>
> Does this mean bars that end on the even hour? If so, would
> they necessarily be of 60 minute duration? And, what would
> you do about the first 30 minutes of S&P trading?}
----- Original Message -----
From: "Karl" <kschr@xxxxxxxxxxx>
To: "CodeList" <code-list@xxxxxxxxxxxxx>; <realtraders@xxxxxxxxxxxxxxx>;
<brente@xxxxxxxxxxxx>
Sent: Sunday, December 19, 1999 10:57 PM
Subject: CL_Re: [RT] Re: RT] As An Aside re. Mechanical S&P Trading Systems
> I have seen reference to using natural hour bars before. Given that the
> markets (bonds and SP) open at "off" hours, how is this implemented in TS
> code? Any suggestions much appreciated.
>
>
> >A quick and dirty improvemnet may be had by changing to natural hour
bars.
> >
> >Brent
>
>
>
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