16The Ping-Pong Play:Batting the Markets Back andForth … All Day Long
A Trading Channel That Moves and Adapts to the Markets in Real Time
The Ping-Pong play is a channel play with a twist: this channel is always present and is continually adjusting itself to the market action. There isn’t any need to draw a couple of parallel lines and wait for two tests of the highs and two tests of the lows to confirm that a channel is in place. This channel is always hanging around, waiting for a trade to set up.
This setup was discovered by accident by Hubert Senters, my business partner and friend for going on more than 10 years now. He spent a couple of years watching KLAC (KLA-Tencor Corp.) on a two-minute chart and a five-minute chart. He noticed that ...