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40 Trading By tlie Boole - Part syiss  ms23 0=7306 H=7324 L=?2% C=73ig Hf1A=7309 Figure 9 On 5/23, before the rnarket opens, I have called in my order to sell at 7313. I get filled there shortly after the open.
suiss fkahc  suiss franc  H=7324 L=7296 0=7319 HfIA =7307 Figure 10 How did f know to place my order at 7313? I peeked. Look at the reading of the vertical cursor, the offset moving average of the high (HMA) is 7313 That L wherPhP w°,?h he Tuture it hows S be ?7513 7; ° ° MA
A Difference of Attitude Well, ("t looks like Ive put my foot in my mouth this time. Why dont I just enter an established trend on the breakout of a 1-2-3 low or a l-ll-llt high? The fact is that I could do that, but the difference is in my attitude at the time of entering the trade. When t am trading the breakout of a range, or when I am trading the breakout of highs and lows, I tend to be very relaxed. I am waiting with my orders in ptace for the market to come to me. Im not impatient - not at all in a hurry. If my price is hit, Im in for better or worse. But when Im trying to enter an established trend, there is an urgency about my trading. I have missed the initial move and I dont want to miss any more. 1 cannot wait for the market to come to me. I want in and I want in as soon as practicable. Therefore I am wilting to monitor the market very closely. This is something I dont normally do. I prefer to just place my orders with my broker and then find out Im in a trade because he calls me up and tells me the order has been fitled. But this is different - because my attitude is different. I am willing at this point to compute the 4 day MA and call my broker daily with a new order. The anxiety factor is greater here. This raises another question - why dont I use this technique to add to my position in a trend in which I already have a position? The answer is two-fold. First, when 1 already have a position, and the market is going my way, Im very relaxed. 1 can afford to wait and see enough momentum to carry prices through the next #2 point, whatever that is. There is no urgency to add to my position, so I can afford to trade with more safety. Second, if 1 used the 4 day MA to keep entering new positions each time it was touched, I coutd end up overtrading my account. The 4 day MA is likely to be hit many more times than there are high or low breakouts. My positions woutd be too bunched to suit me, and I would give up the safety factor of the breakout momentum. • -
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