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Also can be dangerous to buy at new highs ... a conservative strategy is
to wait for a major correction followed by a rally which exceeds the
prior pivot high (higher high) followed by a retracement which fails to
exceed the prior pivot low (higher low) followed by a break above the
previous pivot high with a stop at the previous pivot low. This provides
a nice combination of buying near the lows while forcing the rally to
prove itself against controlled risk.
Earl
----- Original Message -----
From: "Phil Lane" <patterntrader@xxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, January 28, 2000 7:13 AM
Subject: [RT] STK: more theories
> It's dangerous to buy stocks in a correction, hoping for a great
price. The
> safest thing is to wait for a new high, i.e. let the stock prove
itself.
> That way you won't get stuck in a situation like this one -
>
> rgds phil
> http://www.patterntrader.com
>
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