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In a message dated 1/25/00 9:33:04 AM Pacific Standard Time, JAC1390@xxxxxxx
writes:
<<
I was just wondering if thread can share entry ideas.
REASON: I have successfully developed screening techniques that I feel
comfortable with but... I am missing a great number of these trades because;
one,I do not use market orders on the open and two,it appears that the
greatest majority of my screens gap open,thus, even though they have
continued up at what level do you determine to pay up on the open?
The risk of just going in is that the move that got me in may be exhausted
and I now pay at the high end of the gap.Even using Bollinger Bands,
channels, and trenlines do not seem to provide me with answer.
Any ideas??? >>
Here is an idea. Look at the ADX (Average Directional Index). If the ADX is
rising it indicates a strong trend is in progress and you would go ahead and
pay up and not worry about the gap. If the ADX is declining you should wait
to enter on a pullback.
Chuck LeBeau
traderclub.com
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