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Little Chico

08/18/08 8:18 PM

#49252 RE: Duma #49251

Hi Jon

Congratulations on your good success. Trading the 5" chart requires constant attention, it is true. You might back up and use the 30" chart but make sure you are trading with the hourly and daily trend. The 5" chart is potentially the most lucrative but is volatile and prone to whipsaws. Getting in synch with the next chart up that is slower, in this case, will help make sure you are not "fighting the tape", as the old saying goes. That was a mistake I made too many times in the past.

Chico
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Little Chico

08/18/08 8:34 PM

#49253 RE: Duma #49251

Jon,

Alexander Elder,in his celebrated book, "Trading for a Living" discusses this principle as the "Triple Screen Method." He argues that only amateurs look a intra day charts without considering the larger trend! The Wizetrade people promote this idea under the title, "The Three Wize Men." Simply put, trade with the trend and look for the optimal entry points.

Chico