[RT] GEN - simple-minded use of the entropy indicator

[wong <whs@xxxxxxxxxxxx>]

Hi All:

I've been playing around the (smoothed version of the) entropy indicator.

This morning I applied it to a 5-tick chart of Cypress Semiconductor (CY).
(See attached CY chart.)

I use a length of 125 on an arbitrary basis.

I've been holding CY Jun 40 calls for many months now.  I usually get very
nervous when the option is near expiry.  So today I was watching it very
closely.

The entropy indicator had been above the zero line since the beginning of
Jun 1, but peaked early in the morning of Jun 2.  Just about 1/2 hour ago
today, the indicator crosses BELOW the zero line (at 1:54 pm).

I thought for a minute or so, and finally decided to close out my position.


This is the way I would like to use the indicator.  It may not be the best
way or even the proper way, but to a simple-minded person like myself, it
suits my purpose.


Thanks Clyde, Bob, Ron, Dennis, Gary and others!



Regards,

Wong

Attachment Converted: "f:\eudora\attach\CY 5-ticks.gif"