myron,
get out asap if things dont go your way.. small caps can easily tank 30-50% real quick.. stay safe
Subject: The Rational Analyst
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To: glen dickerson (75 )
From: Rainier Trinidad Thursday, Dec 18 1997 3:03PM EST
Reply # of 81
[ RADAF Sell Indicators and Other Comments ]
Glen,
I'm using a couple indicators at a time and on occasion rotate through the others for added perspective. What remains on my screen, however, are the RSI, MACD, and two proprietary indicators from Omega Research, the Expert Analyst and Larry Williams Indicators.
As you noted, the RSI would be crossing/dropping below the critical 50 level. As I learned from a "How to create a successful trading system" video (done by some formidably intelligent looking trader), it can sometimes be more effective to use indicators in unconventional terms. I in fact use the RSI not as an overbought/oversold indicator (It was a top trader in Market Wizards who thought overbought/oversold indicators were more a liability than an asset), but as a trend following tool, subject of course to various filters from my other indicators.
John Murphy, the Technical Analyst for CNBC put out a book called the Visual Investor, and he also mentioned the additional significance of the 50 level for the RSI as being similar to the zero line in the momentum oscillator. I look at crossovers at this level as potential buy/sell signals.
For my MACD, I adopted the settings the Head Trader at my internship used, and it is incredibly accurate IMO. The other two indicators are too complex to explain in this post alone, and are so well guarded that I can't even open them up with Trade Station.
Anyways, I'm getting my sell signals from the RSI, MACD, and Expert Analyst indicators. Oh yes, and I also see the Stochastics signal you mentioned about--it made a pretty good call in this case.
Hope this helps.
Regards,
Rainier |
