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Neal,
I would appreciate seeing the article.
Thanks..Ron
Neal Hughes wrote:
>
> >
> > >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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