Forum Archive Index - July 2001

[Phaedrus <Phaedrus@techemail.com>]

Jerrold, I trade solely from the Long side.
<<<<  At what point would a contrarian investor be considering jumping aboard 
ITC?  Michael Phillips  >>>>
 Don't know - you would have to ask one! The way I see it, contrarian investors 
would have been jumping aboard ITC all the way down, and are now all losing 
money. I go with the ancient Oriental wisdom which counsels against trying to 
catch falling knives. Theoretically it is possible to short-term trade a 
falling stock like ITC, using oscillators.  In practice it is vey difficult to 
do so profitably, with any consistency. If you want to trade short-term, it is 
much easier to make money on stocks that are rising or in a trading range.
<<<<  I know Phaedrus you would wait for a chart to develop a new up trend,... 
but in the case of RMG that would have been 26 to 27c and one would have to 
ignore other evidence of a grand buying opportunity.  'Openmind'  >>>>
 Trend indicators such as trendlines are lagging indicators. Using them you 
will always be late in and late out. Used on clearly trending stocks, though, 
nothing will beat them. My main use of trendlines is as an exit strategy for 
stocks that have been (or are) in a rising trend. My entries are based on other 
technical criteria. This is all about selection of the best tools for the job. 
For some stocks, buy and hold is best, others are most profitable with 
oscillator based trading systems, others give the best returns with Trend 
indicators. Many are best avoided altogether. I would see RMG as being more 
suitable for short-term trading using oscillators for entry and exit signals. 
Good post, good pseudonym. Keep them coming.
<<<<  I'm assuming that in a normal Ascending Triangle formation the upper 
trendline has some degree of inclination, whereas with CEN the incline was nil 
(until recently).    Michael.   >>>>
 No, by definition Ascending Triangles have a flat upper trendline. As per my 
post "CEN has been forming a classical Ascending Triangle formation. These are 
created when the upper trendline is flat, and the lower trendline is rising."
                       Phaedrus.



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