Re: [CANSLIM] New CANSLIM method

From: AlpineTap34@aol.com
Subject: Re: [CANSLIM] New CANSLIM method
Date: Fri, 31 May 2002 00:44:32 EDT

Next Article (by Date): [CANSLIM] semi-log DGO? Canslim Dave
Previous Article (by Date): Re: [CANSLIM] New CANSLIM method "Tom Worley"
Top of Thread: RE: [CANSLIM] New CANSLIM method "Patrick Wahl"
Articles sorted by: [Date] [Author] [Subject]

IMO, trading should be simple and objective. There is no reason to make it 
complicated. If you think too much, you aren't trading properly. So, keep it 
simple. Support is support. Resistance is resistance. 

As we all know, conventional trading suggests we buy breakouts and sell 
breakdowns. Unfortunately, the market has suggested otherwise for the past 2 
years or so (for the most part anyway). Basically, it's been telling us to 
the exact opposite of pattern trading. I'm not implying that the patterns we 
look for aren't valid because many are. It simply means that if you get on 
board a pattern that breaks out and subsequently fails, it's a short. The 
point I want to make (my opinion only) is your lower risk trades are going to 
be to short at objective resistance levels with stops on a violation 
(particulary so with weak bases underneath)  On the flip side, your lower 
risk longs are going to be buy at objective support levels with stops on a 
violation. Sure, exploding through resistance is without a doubt a big 
positive just as blowing out at support (if shorting) a big negative, but 
that's when things get whippy as heck which means more wiggle room and higher 
risk. I guess that's what it boils down to....how much risk you want to take.

Long story short, I think it's best to listen to what the market is telling 
you and try not to fight it. 

- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.

Go to Jeff Salisbury LWGate Home Page.