John, I've tried point and figure many times yet haven't either understood it well enough or learned to use it for timing trades. I use MetaStock's version. What I find difficult is deciding the value to use, as it determines the threshold for assigning an x or o reversal. It also dosen't tell me anything about velocity of money.
Within the same package I frequently use candlevolume. What I like is that it shows volume and price together, which indicates to me where most buyers are placing their bets. The same idea of peaking volume on selloffs and tops can be seen throughout the price chart as a horizontal expansion of the price candles.
In addition I run through most of the 'indicators' for measuring momentum, stochastics, accumulation (my favorite is price volume trend).
Also very useful, I run a linear regression back through, what by eyeball appears to be, the current price movement. Then I clone that linear regression and place it at the top and bottom of the trading peaks +-. It forms a good channel and can be micro tuned within the channel. Similar to bollinger bands, except that it takes into account more time and shows breaks of trend.
Last, cycles and last year's price moves during the same months.
Its all a pain, tried to write scripts that run it all which filter out significant stuff.. didn't work. Listening to what happens here, on the news and by rumor (sentiment?) helps also. There are a few threads and individuals which act as pretty good contrary indicators for short term trades.
The only thing I "know" is sell losses quickly (-20% on options) and be willing to take a profit.
They just said something about BAY being confident... Among the networks yesterday, their call premium seemed the least expensive.
cheers... |
