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Jim,
     I've found that the market likes to shake stops out by spiking down 
through a whole number and then rallying back up.  That's why I don't like to 
set stops with my broker, but would rather use mental stops.  I set my mental 
stops at the 3/4 point below the trend line on long positions and require that 
the stock closes below that stop.  Then I'll close the position the next day.  
I have some friends that even require two or three closes below the stop to 
avoid being shaken out, but one is enough for me <G>.
     If a stock breaks out of a well defined intermediate or long term up 
trend and then continues up, I'll erase the top of the old up trend channel 
and start a new short term channel from the low before the breakout.  For a 
Raff Regression short term channel that hasn't been well confirmed, I'll 
stretch the channel.

Jim   

-----Original Message-----
From:	J.F. DeWilder 
Sent:	Tuesday, July 01, 1997 12:32 AM
To:	Jim Greening
Cc:	Metastock List
Subject:	Re: Weekly Pick

Jim Greening wrote:
   The reward/risk ratio is
> certainly great with the target at 92 just under the top of the LTUTC and 
the
> stop at 37 3/4 just under the bottom of the channel.  


Jim and all,

When you set your mental stops relative to the trend lines, do you 
require that the stock close above or below your stop before you buy or 
sell.  Or does the stock not need to close, but just exceed your stop 
during the day, in order for you to take action.

Also, please assume a stock violates a trend line ( lets say rising for 
the sake of argument) and begins marking out a Trader Vic 1-2-3 
formation. And instead of nonconfirming the high prior to the trend line 
violation, it confirms the high and resumes its uptrend. Question: do 
you enlarge the previous channel to encompass this latest excursion.  Or 
do you begin a new channel with probably a different slope.

Thanks to you or anyone for advice and guidance.

Jim DeWilder