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Just to make sure I understand, I've attached a GIF of one of the coils
illustrated on your web page and annotated it with a count of 5 "touches".
Is this how you count your touches and do I assume that your short entry
would be at #4 with something on the order of a 5 handle stop at the 50%
retracement? If not, could you post an annotated chart when you have the
time?
Earl
----- Original Message -----
From: "Timothy Morge" <tmorge@xxxxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Wednesday, May 30, 2001 8:41 AM
Subject: Re: [RT] Coils
> At 08:19 AM 5/30/2001 -0600, you wrote:
> >Tim, do you have a set of guidelines you use in identifying coils:
minimum
> >number of bars, percentage retracement of preceding move, minimum time
> >frame, etc.?
>
> Good morning, Earl!
>
> I actually am doing work by hand on 13 and 39 min charts of the S&Ps and
> Nasdaq and 30 year bond markets to try to "formalize" my definition and
> also refine some measuring statistics I have that were built on end of day
> coils. I expect coils in general to have 5 "touches" or alternate closes
> before they breakout. By an "edge," I mean that if I am able to pick a
side
> as the coil is just beginning to form, I can often get great trade
location
> if I am willing to sell at levels even outside the coil's highs [in a sell
> side example]. So if a newly forming potential coil has confluence above
it
> or a strong fib cluster or a down sloping Median Line above it, I will
> often try to sell any approach back to the first high bar after price
makes
> an initial low [I hope this makes some sense]. If I choose a side, I have
> no need to wait for the third or fourth or fifth leg before entry--which
is
> how most break out traders trade a consolidation pattern.
>
> I am seeing good results with measuring statistics and I am hoping that
the
> end of day technique will translate well into a measuring technique that
> allows a useful price projection series solely based upon the number of
> touches and the width of the coil.
>
> Best,
>
> Tim Morge
> www.medianline.com
>
>
> >Also, when you refer to "trading against the edge" of a coil, I
> >assume that in the case of a decline you are referring to selling against
> >the high of the coil - do I assume that this means you require a
retracement
> >to establish the upper bound, decline to establish the lower, then sell
the
> >rally by fading the next retracement a couple of handles short of the
upper
> >bound?
> >
> >Earl
> >
> >
> >
> >To unsubscribe from this group, send an email to:
> >realtraders-unsubscribe@xxxxxxxxxxxxxxx
> >
> >
> >
> >Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
>
>
> To unsubscribe from this group, send an email to:
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>
>
>
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>
>
>
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