How did you generate this System Test Report? Did it come out of Q+?
Now that I've read a few of the classics recommended by Richard, I am ready to take the next step and work on developing my trading system. Have recently finished O'Neil, Pring's Market Momentum, Achelis' TA from A-Z, and the TA course by Murphy. It's starting to gel I think. I need to re-read them again to sort a few things out.
So far, I've used TA to "stalk" the stocks I was already following. In the course of doing that I discovered that many of my big gainers in my portfolio were screaming at me to sell them. So I did and avoided 20%+ losses! Already TA has paid off for me, but I have been given very few buy signals so far. I presume this is because the overall market is so doggy right now. Many of the stocks I follow are showing signs of becoming oversold though so I am glad to be sitting on some cash!
Here are some of my observations after my initial study:
1) Determine your time frame. Mine is 6-18 months.
1.5) Start with basic trend analysis, for market and individual stock.
1.75) Use BB to confirm basing.
2) To find candidates for buying, analyze Monthly, Weekly and Daily data, in that order.
3) If indicators used with weekly data don't signal a buy, eliminate it, don't analyze the daily data, it's not ready to buy yet.
4) Different indicators for different time frames. For example, for weekly data, the MACD, DMI and Stochastics seem to provide a nice combination of predictive and lagging (confirmation) indicators. For Daily data, Stochastics, Volume and Money Flow are useful indicators.
5) Each stock has its own "signature", the useful indicators, cross-overs and thresholds vary from stock to stock.
Wishing you good fortune in all your endeavors! |
