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Lou,
     I'll copy a previous post below:
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Cliff,
     It's explained in the book "Trader Vic - Methods of a Wall Street 
Master", by Victor Sperandeo.  His method of drawing trend lines is explained 
on page 71.  He defines short term trends as days to weeks, intermediate term 
trends as weeks to months, and long term trends as months to years.  To draw 
an up trend first select the time period to be considered.  Then draw a line 
from the lowest low in that period up and to the highest minor low preceding 
the highest high so that the line does not pass through prices in between the 
two lows.  (Not passing through any data and a low before the highest high are 
both important points).  Then extend the line to the right past the highest 
high point.  It is possible that the line will go through prices past the 
highest high.  In fact, that's one indication of a trend change.
     For a down trend its similar, except the line is drawn form the highest 
high in the period to a high before the lowest low.  
     I highly recommend Trader Vics book just to understand his trend line 
strategy that he explains in chapter 7.
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Guy,
     I also prefer hand drawn channels using Trader Vic's trend line drawing 
methodology.  That's all I use for intermediate and long term trends.  
However, if you use that methodology for short term trends that haven't had 
time for a couple of highs and lows, you will almost always get stopped out 
during normal movement as the first highs and lows are made.  To get around 
this problem I use Raff Regression Channels for short term channels only since 

they tend to be more forgiving.  
     The problem is trying to tell where to set your channel start and end 
point.  For new Short Term Up Trend Channels (STUTCs), the start is easy.  Set 

the start at the low just proceeding the down trend channel breakout and don't 

ever move it.  After at least one new good low has been set and a following 
high has been set that is higher than the high just before the new low, set 
the right side of the channel at the new high and extend the channel to the 
right.  Anytime a new high is made, stretch the channel to the right to 
include the new high.  Do not stretch the channel anytime the close is not a 
new closing high.  
     Once the trend channel is drawn, trend channel trading is simple.  For up 

trend channels, buy when the stock has just bounced off the bottom of the 
channel.  Set your target just below the top of the channel.  Set your stop 
just under the bottom of the channel.  Vice versa for a down trend channel and 

a short position.  
     One change I'm in the process of trying applies to new STUTCs.  I draw 
the new channel as described above.  I may have bought when a short or 
intermediate term down trend was broken.  If that was the case, I'd set the 
stop just under the old low and not change it until I had enough data for the 
new STUTC.  I will only have bought when there is an intermediate or long term 

up trend channel already in existence.  I'll set my target based on that 
intermediate or long term trend.  After the new STUTC is established, I'll 
move my stop to just under that STUTC, but will keep my target based on the 
longer term trend channel.  Whenever, the stock hits the top of the STUTC, I 
won't close the position, but will sell covered calls to protect it as I did 
with IOM today.  I'll buy the calls back when the stock reacts back to the 
middle of the STUTC.  If the stock continues to rise, I'll let the stock be 
called.          
     My OH stop was somewhat questionable since the late April low that I used 

to draw the channel wasn't much of a pullback from the high.  However, I 
rather make a mistake closing a position I shouldn't have, then holding a 
position I should have closed <G>.
     After 2 or 3 months, if I'm still in a stock and it has had some good 
highs and lows that will confirm a Trader Vic type trend line, I'll switch to 
a channel constructed that way.  Some earlier posts on my strategy that you 
might have missed follow:
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    Hope that helped.
Jim

-----Original Message-----
From:	L. A. Baker 
Sent:	Friday, June 13, 1997 1:53 PM
To:	Jim Greening
Subject:	Re: Raff Regression Channels/Andrews Pitchfork

Thank you for your insight. Earlier postings to the Metastock list have
referenced a 'Trader Vic' method of drawing long-term trend lines. Would
you care to share the specifics of this technique? - Lou

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