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<DIV><FONT color=#000000 face="Bookman Old Style" size=4>I think your logic is
good, but I thought you used fundamentals to first select a group of stocks
first and then apply this technical processing.</FONT></DIV>
<DIV><FONT color=#000000 face="Bookman Old Style" size=4></FONT> </DIV>
<DIV><FONT face="Bookman Old Style" size=4>I do a similar sequential process
using fundamentals first then technical selection later. My fundamental process
is done with filters in an AAII Stock data base and then I use Bollinger bands
for entry & exit. I must admit your technical process is more sophisticated.
Also based on your reported progress your system is much more
profitable.</FONT></DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 solid 2px; MARGIN-LEFT: 5px; PADDING-LEFT: 5px">
<DIV><FONT face=Arial size=2><B>-----Original Message-----</B><BR><B>From:
</B>Jim Greening <<A
href="mailto:JimGinVA@xxxxxxxxxxxxx";>JimGinVA@xxxxxxxxxxxxx</A>><BR><B>To:
</B>Metastock <<A
href="mailto:metastock@xxxxxxxxxxxxx";>metastock@xxxxxxxxxxxxx</A>><BR><B>Date:
</B>Sunday, December 13, 1998 9:57 AM<BR><B>Subject: </B>Building Blocks -
Trend Channels<BR><BR></DIV></FONT>
<DIV><FONT size=2>All,</FONT></DIV>
<DIV><FONT size=2> Last week I talked about how I
use trend channels to set targets and stops to tell me when to exit a
position. This week I'm going to go back to the beginning to discuss
how I use trend channels to tell me when to enter a position. I'd
appreciate any comments pro or con on this methodology.</FONT></DIV>
<DIV><FONT size=2> I've come to depend more and more
on trend channels as my primary technical analysis tool. The theory of trend
channel investing is simple. First you have to construct the trend channel.
After that is done the rest is easy. For up trend channels you open a long
position right after a stock bounces off the bottom of a channel and close
the position when it hits the top of a channel. Vice versa for down trend
channels. I treat horizontal channels like up trend channels for trading
purposes.<BR> Of course, I expand on this simple
methodology slightly <G>. First I construct short, intermediate, and
long term channels on all my charts. My definition of short,
intermediate and long term is flexible. In general short term is days to up
to a few months, intermediate term is a few months to over a year, and long
term is years. I like to open a position in the direction of the long term
trend channel when an intermediate term trend channel is broken and the
stock reverses in the direction of the long term trend. Since this is a
fairly rare occurrence, my secondary method which occurs much more
frequently and is, therefore, the one I use the most, is to enter a position
when the short term trend channel is broken and the stock reverses in
direction of the intermediate term trend channel. In both cases, the
reversal is a better buy signal when it occurs in conjunction with a bounce
off the bottom of the longer term trend channel. Once a stock has
reversed its trend, I construct a new short term trend channel in the
direction of the longer term trend. I use this new Short Term Trend
Channel to set my targets and stops as I described last week if I entered a
position on the breakout of the old channel. If I missed entering the
position at the breakout, there are additional entry points every time the
stock bounces off the bottom of the new short term trend channel.
<BR> As you can see, using trend channels for
signaling when to enter a new position is straight forward and simple.
The trick is how to objectively and consistently construct the trend
channels. For short term up trend channels I use the Standard
Deviation Channel built into MetaStock. I start the channel immediately to
the left of the lowest low in the data being considered and end immediately
to the right of the highest high in the time frame. I set the deviation at 2
to determine the targets and at 1 to determine the stops. I usually
leave it at 1 for looking at the charts since the stop is more important
than the target I extend the channel to the right. Anytime a new high is
hit, I'll drag the right end of the channel immediately to the right of that
high. After a few months with at least two good reactions, I switch to
Trader Vic type trend lines to construct my short term channels. I only use
Trader Vic type trend lines for intermediate and long term channels. I
like the Trader Vic methodology much better than using a standard deviation
channel, but it gives many more false signals than standard deviation
channels do for very short term channels without any major reactions in the
data. </FONT></DIV>
<DIV><FONT size=2> For a Trader Vic up trend line,
start with the lowest low in the time frame being considered. Draw a line
from that low to a low before the highest high in the time frame such that
the line doesn't pass through any data. It's important that you don't draw
the line through any data or to a low that is past the highest high in the
timeframe. A down trend line is just the mirror image using the highs in the
time frame. To construct the up trend channel, extend the line to the right,
then draw a parallel line through the most extreme high in the time frame
such that the line doesn't intersect any other data points. This is easy
with MetaStock. You can hold the CTRL key down, then hold the left mouse key
down once you are on the original line and drag a parallel line to where
ever you want it. You can do the down trend channels in a similar manner.
Horizontal channels are the easiest. Just drop a horizontal line on the
highest high and lowest low in the time frame. My final touch is to change
the line color and style: blue and dashed for short term channels; red
and dashed for intermediate term channels; and magenta and dashed for long
term channels.<BR> That's all there is to it,
what do you think? Does it make sense?</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Jim <BR></FONT></DIV>
<DIV> </DIV>
<DIV> </DIV></BLOCKQUOTE></BODY></HTML>
</x-html>From ???@??? Sun Dec 13 19:00:56 1998
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Sun, 13 Dec 1998 22:27:04 +0000
From: "Ed Hessler" <tiejh@xxxxxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Subject: Re: good computers
Date: Sun, 13 Dec 1998 17:26:12 -0500
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from Ed Hessler: I bought a laptop Depp computer about 1,5 years ago, and
also a desktop from Dell. They have NEVER had any problems - I am really
impressed! This year I purchased for my children 2 Dell laptops for
Christmas. Price is reasonable, and the warranties are fine. I have used
customer service a few times and had the usual waiting period on the phone.
However, an email message gets their prompt attention. My computers are
Win 95. The two I ordered for my children are Win 98, but they have not
been used yet.
----------
> From: divenfish@xxxxxxxxxxxxx
> To: metastock@xxxxxxxxxxxxx
> Subject: good computers
> Date: Friday, December 11, 1998 1:10 PM
>
> I'm in the market for a new computer and would appreciate
> comments good or bad about Micron, Compaq, Dell or any others.
> I want more power and it's time to put my pentium 133 machine
> out to pasture. I'm looking for information on a machine that
> you have used and have experienced few if any problems,
> especially with while using Metastock. Any words about
> quality, performance, warranty, customer service, and price
> would be nice.
>
> Also, any comments you have good/bad about Win98, especially
> using muliple moniters, would be helpful.
>
> If you like, reply privately.
>
> Thanks,
>
> Ken
> mailto:divenfish@xxxxxxxxxxxxx
>
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