T/A ETF AND INDEX

[capt_jmj]

I have thought long and hard on the subject of e-waves, and in the final analysis, I have come to the conclusion there may not be that much difference in our approaches. If you plotted all of the indicators we use in Merlin on the same graph, I don't think that the summation of all those values would look too much different than your e-waves. The major difference of course is that we do it with numbers as the market trading unfolds, while with e-waves there is a predefined pattern that you then attempt to match to the market. The problem of course is that both systems tell you the increased likelihood that something is about to happen, but without telling you precisely when. When we are at the OB and OS extremes, when all the indicators say it's time for a reversal, the market can stubbornly grind into the stops for a few more days before succumbing finally to the market forces.

The bottom line is that it is your results that count, but to be certain, if your analysis shows that you have a winning strategy, you must also have the patience and discipline to stick with it through good times and bad. Unfortunately, many traders treat their strategies the same as they do their trades, buying high and selling low. Sometimes you have to ride out a few losers to be there for the big winners, and you must have the patience to allow the statistics to work for you.