Thanks for the response Chandler and all.
You are right, I am a freshman at Wharton, but I don't know if you met my father or not. I'll ask him the next time I talk to him. I'll try to do my best in making prompt replies, but things are pretty hectic around here with finals coming up. To top it off, I'm not exactly the world's greatest typist. I don't scan for mac specifically (too many stocks would yield signals this way), but rather I use mac as a default tool/indicator in my analysis of the scans that i run each night. I'll post my scans/database when I get a chance on the QP (that's what I use for basic scanning) thread; however, they're pretty basic and simple. Although mac calls nice long term moves, I use it for fairly short trades (usually 2-5 days, sometimes longer), because I've noticed that the stocks I look at will often selloff/rise within a few days of touching the high/low avg. I have noticed mac to be improved when viewed within the context of normal chart patterns/trendlines, and occasionally candlesticks. Specifically, I have noticed that a lot of stocks have formed, or are forming head and shoulders tops or double tops. A lot of issues gave low risk sell/short points on either the right shoulder, or the second peak of the double top (has anyone else noticed this?). I try to avoid using mac in stocks that have really large trading ranges, b/c of more whipsaws, and stick to more volatile/momentum issues. When trading with mac, if I can net a few points (1-4) I'll usually take it, because in a good trend you'll usually have several prime opportunities to trade off of the supp/res. values for a few points. I also usually don't risk more than a point or two (this varies as a function of stock price). I have found that sometimes the best timeframe for powerful signals is 1. after an extended absence of a signal, i.e. a sell siganl occurs after many weeks or months of not issuing one, or 2. there has been a substantial increase/decrease in price followed by an opposing signal. IMO, a sell/buy signal occuring after a long absence is analagous to a long term well tested trendline being broken. There is more to be said, about the practical application of mac, but I have to cut it short for now. Although I have not formalized mac into a strict system(s), it is my goal that this discussion will lead to that.
Good Trading,
Frank
P.S. keep the discussion and questions going, i'll try to keep up. |
