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Re: Coyotte


OXR EXIT


Count Back STOPS are done the same way :

From the recent high bar count back untill U find a bar with lower low than the low of the high bar = CB2 -- from CB2 find the next bar with a lower low = CB3.


A close below CB3 triggers a exit.


Wilson explains how the use of the Average True Range indicater in conjuction with CB , can allow the STOP to be adjusted for the type of trade , Short to Long Term .


BUT I prefer in this the most VITAL part of the trade to use all predetermined STOPS only as a insurance measure -- basic analysis should see U safely out the of the position BEFORE the stop is triggered .


The graph of OXR shows some simple reliable techniques --- expessialy in stocks like OXR & LHG , these are volatil trading stocks .-- these are the type of stocks that short/med term traders thrive on :



First off notice the Bollinger Bands --- must be set at 20*2 simple .

When Price starts to break above the upper band , this is showing you that both speculators & short term traders are in this market , hence the trend at this pace is unsubstanable ---- early warning !!!


Second the ADX indicater -- set at 14d as the trend becomes steeper .

take particular note of the diverging D+ line (blue) -- this is showing that allthough the price is rising -- the actuall trend is weakening -- Specs & Traders are leaving .

The ADX line (grey ) -- this is showing the STRENGTH of the current trend .

The D- line (red ) --- this showing the down side strength.

The D+ Line (blue) ---- this is showing the up side stregth.



April / May clearly shows that price was breaching the BBs --- the D+ was diverging and D- was strengthening -- near the top the tails on candles where consistanly up & price was compressing .


Ample warning to exit long be the CB was hit.



July -- D+ diverging & ADX at a low point , again pointing to caution.



Sept --- B/Bs are breached ,ADX diverging & at a low level , along with upward pointing tails on candles.


Current --- a half mast bear flag is forming , along with up tails !!!


These along with Twiggs Money Flow are the only indicaters I use and only when Specs/Traders are in the market.


Will post a entirely different stock MBL next .



disclosure : SHORT position Thurs --- 1/2 Long Hedge Fri (cover weekend)


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