"Convergence of Indicators and Levels"

Hi Day Traders,

On July 19, 2000 the September S&P opened at 1506.80
and quickly rose to 1510.00. Choice Day Trades
wanted to sell at 1510.90 but it never got there.
Starting about 10:30 EST it started to sell off
rapidly with little to no pull backs on the way down.
It descended to 1494.50 by 12:20 and finally started
to rally. We were patient and just after 2:00 our
1503.40 limit order was hit. The high of the rally
was 1503.50 and it sold off rapidly. When 1495.50
was reached, I advised covering the short at 1496.10
but not all of our subscribers were filled as the
market rallied to 1498.00. I advised pulling the
covering order at 1496.10 if they had not been
filled and moving the stop down to 1498.80 where we
were stopped out for a nice gain.

Why sell 1503.40? There was a convergence of
resistance at this point and time. I like to have
a convergence of at least two of my proprietary
indicators before placing a trade, but this time
there was a convergence of five of them. Talk about
a "Choice" trade setup! And it paid off immediately.

So look for a convergence of indicators or levels
before placing your trades. And make sure the ones
you are using are reliable.

Yours for success,
Ellery Coleman

The trades referred to in this article are trades that were sent to our Choice Day Trades subscribers as they happened. We have no way to verify whether or not all or any of these trades were taken in real time since we did not take them in our account. Therefore they should all be considered hypothetical.

For questions or comments, call 478-922-9155, or
click here to email me.

*Results may not be typical
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