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Strategies & Market Trends : TAOTN- TA on the Net

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To: Gary K. Best who wrote (40)9/13/1996 11:00:00 PM
From: Bill Sandusky   of 1628
 
Gary and Joel, Just stopped by and noticed this discussion of my
CCI(13) system so thought I'd say hello and clarify a couple points.
First, I'm looking for a REVERSAL of the CCI signal from its maximum
negative level (below -100) for a BUY ALERT and a maximum positive
number (above +100) for a SELL ALERT. Once the Alert is signaled my
attention goes to the MACD(5,35,4) for CONFIRMATION of the buy/sell
alert. There is NO time limit for this confirmation. I simply require
the signal line and difference line to cross in the direction of the
trade to confirm the buy/sell alert. Once the confirmation occurs I
look at three other indicators, ALL of which MUST CONFIRM. These are
+/-DMI(13), RSI(9) and Relative Strength vs S&P-500. All must be
moving in the direction of the trade by at least one period. In the
case of a buy, DMI- must be declining. For a sell, DMI+ must be
declining. On many occasions, I have waited eight or more days for
MACD confirmation. That's the beauty of the system... it tends to
keep you from making a mistake. But the system is perfectly capable
of whipsawing. Hope this is helpful.

Best regards,

Bill Sandusky
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