Caterpillar Inc. (CAT) has been wandering sideways (similar to the S&P) for the last 2 weeks after hitting the first target (black horizontal line). With this lengthy sideways action I am implementing a time stop for this and calling the trade over. With the style of trading we use in Advanced GET there is an expectation of movement. If a trade is not moving the probability that the analysis will hold up diminishes. So if your in something and it has not gone where you expected its time to really tigthen up the stops or exit the trade completely. As this relates to CAT its a profitable trade of a couple points, not a home run but its profit!
Good Trading
Craig
I have a question about oscillator. I have read that I have an impulsive wave if the oscillator is above the streght band. But in many cases this is above for only a few bars. How many bar should remain above the streght bar? For example in the case of XTL are required 7 colour bars for confirmation to be in trend.
Posted by: max | August 28, 2008 at 04:03 AM
Max,
The oscillator has to be used in conjuction with the elliot wave study. I would not look for a specific number of bars above the strenght band at all. As a matter of fact I take the bands off of my oscillator.
Craig
Posted by: Craig | August 28, 2008 at 10:15 AM