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At 05:43 PM 12/16/97 EST, MR LYNN G wrote:
>Thanks to all who responded: Jim, John, Neal,Proffittak, Richard and Walt and
>others
>SUMMARY:
>The main way to eliminate whipsaws seems to be (1) with displaced MA and (2)
>the bounce method i.e., a move starts,then, retraces to a MA and you enter in
>direction of the original move. Displaced MA appear to be good trailing
>stops.
>
>Additional Clarification:
>(1) What actually triggers the entry for the bounce method?
> (a) Move close to the MA on a retracement and enter at the market or (if
>this is
> used, do you look for some verification that the retracement has
>ended?)
> (b) after the retracement, enter on a stop order to buy as it goes
thru a
> previous pivot or
> (c) some other method
>
I don't use a bounce method (by that name, anyway), but a short-term
displaced moving average could trigger the entry (when crossed) but
I'd personally only do this near a Fibonacci node.
>Also what time frames do you use for your MA? I have a feeling it may vary
>for daily charts, 60 min and 1 minute traders or do you feel it will work on
>all time frames?
>
I use the 3X3 (3 simple displaced 3 bars) on all time-frames. I use others
only for longer time-frames (daily and weekly charts).
>This information has been very useful and gets into the specifics of making
>trading decisions which I feel is one of the main purposes of this list.
>Thanks to everyone.
>Lynn
>
Yes, the specifics add a lot of value to the email list. It's fun, thanks
for summarizing the above.
-Neal.
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