Letters To S&C  |  APR 2000

Letters

The editors of S&C invite readers to submit their opinions and information on subjects relating to technical analysis and this magazine. This column is our means of communication with our readers. Is there something you would like to know more (or less) about? Tell us about it. Without a source of new ideas and subjects coming from our readers, this magazine would not exist. Address your correspondence to: Editor, STOCKS & COMMODITIES, 4757 California Ave. SW, Seattle, WA 98116-4499, or E-mail to editor@traders.com. Letter-writers must include their full name and address for verification. Letters may be edited for length or clarity. All letters become the property of Technical Analysis of STOCKS & COMMODITIES, The Traders’ Magazine. The opinions expressed in this column do not necessarily represent those of the magazine. —Editor AFTER-HOURS TRADING Editor, As a long-time reader and recent subscriber, I wish to compliment you on your magazine. I look forward to receiving it each month in my quest to improve my current methods and learn new ones. Perhaps you might consider answering this question: With the advent of after-hours and overseas trading, I am concerned that current technical analysis techniques that depend on opening and closing prices will become obsolete or ineffective. I am having success with volatility breakouts (based on average true range) and candlestick patterns, both of which require opening and closing prices, combined with traditional technical analysis. A stock may be up one point today based on yesterday’s close but down three from overseas trading. Which will become the true measure of today’s change? Thanks again. You don’t have to change STOCKS & COMMODITIES magazine at all to keep me happy. RICK PATTON, via E-mail Most traders will use the open and close of the highest-volume market as the best indicator. For a US investor, that might be overseas! —Editor

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