|
PureBytes Links
Trading Reference Links
|
Can this analysis be used by daytraders or only by position traders?
I "assume" the analysis is performed after market hours without having to do
calculations during trading hours but I am guessing. Any daytraders find this
useful?
Lynn
In a message dated 98-08-20 02:20:10 EDT, rsos@xxxxxxxxxx writes:
<< :What the devil are MAE and MFE ?? Please.
MAE: Maximum Adverse Excursion.
MFE: Maximum Favorable Excursion.
John Sweeney of TASC (Technical Analysis of Stocks and Commodities) wrote a
book called "Campaign Trading" where he expounded on the subject of MAEs and
MFEs. Basicly, the idea of MAE is how far away the market moves against your
entry point before it either turns around in your favor or it will move even
more substantially away from your entry point and never gives you a chance
to breakeven . At that point, if it does not turn around in your favor,
sometimes you're better off doing a stop and reversal. MFEs are how far away
from your entry points a trade will move in your favor and then reverse
itself, leaving you with substantially less profits. You can use this point
as your profit target.
I'd highly recommend you read his book >>
|