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I think we are talking about two different things. I am coming at it from
the perspective of a positional stock trader who sees turning points playout
over days rather than a short term options or futures trader who watches
turning points playout over minutes.
Thanks for the clarification.
Dan
>From: Neal Hughes <neal@xxxxxxxxxxxxx>
>Reply-To: realtraders@xxxxxxxxxxxxxxx
>To: realtraders@xxxxxxxxxxxxxxx
>Subject: Re: Re[2]: [RT] Re: Fibo Research
>Date: Thu, 17 May 2001 10:14:07 -0700
>
>
> >
> > >Liquidity can be a real problem.
> > >
> > >When you are right, you struggle to get a fill, because there
> > >is a lot of competition for the liquidity at turning points. When
> > >you are wrong, it is very easy to get a fill..
> > >
> > >when you are nailing market turning points, you find
> > >there isn't enough liquidity..
> > >
> > >Neal
> >
> >This statement seems counterintuitive to me. At turning points, there is
>a
> >balance between buyers and sellers and liquidity should be at its
>greatest.
> >When a market is trending, buyers and sellers are out of balance and the
> >market moves. Are we talking about the same thing?
> >
> >Thanks,
> >
> >Dan
>
>
>Dan,
>
>Think about it this way.. If you manage to predict the high and the low
>of the day.. What are your chances of getting a fill at those two
>prices, the high and the low? There are very few trades at the
>high and the low, usually. Often the chart reverses so fast at those
>levels.
>
>It is very easy to get a fill when the market goes against you,
>more difficult to do so when you are right. Even more difficult if you
>are precise.
>
>If you haven't struggled with this a lot, try Fibonacci!
>
>Joe DiNapoli wrote an excellent article on this (published years ago
>in Stocks and Commodities magazine). It was about the problem
>of X'd trades (cancelled trades) at turning points.. If members are
>interested I'll locate it on the web for you.
>
>If you haven't had a trade cancelled by a floor trader, keep getting
>better... It will happen.
>
>-Neal.
>
>
>
>
>
>
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