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James Sogi

Philosopher, Juris Doctor, surfer, trader, investor, musician, black belt, sailor, semi-centenarian. He lives on the mountain in Kona, Hawaii, with his family.

Fish Finders, by Jim Sogi

The fisherman have fish finder sonar that can see how deep in the water the fish are. The computer display shows the fish there. You bait your hooks and drop them as deep in the water to where the fish are going to bite, and wait. One rig fisherman use is called 'damashi' where several hooks are tied in a series along the line, so as to cover different depths on one dunk.

Traders have their statistics to find where the fish will be. They can bait their orders and lower them to the correct depth and hope for a fill. Some time ago the writer posted a study that gaps over 4 points have a good chance of getting to the prior open price during the day. The 'gap gets filled' is standard trader's lore which tests well. If one was bullish, and wanted to add to longs, or enter, dropping some bait to around yesterday's close in the gap area might have yielded some nice fish without suffering a draw down by chasing the open.


Jim Sogi, May 2005

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