Hello Bruce,
In many cases you are left looking for a preponderance of evidence. You are using maybe 10 or more indicators and in most cases all will not be telling you the same thing. Now, in the case of TRV we need to look at more evidence.
I do not have current data yet so I can not actually look at the chart but I can suggest what you look at...
If all the short term indicators are saying buy (StochRSI (8-5), StochRSI (14), EMA Xovers, Optimized Parabolic SAR (OPS), MACD (8-17-9, Insync Index, CCI (13)) you then need to look at the longer term indicators for DIRECTION. In the case of TRV we see that Dahl is above 0 BUT pointing down. This in itself WOULD NOT tell me it's a definite no look. It would just tell me that I need to look at the rest of the Longer term indicators much closer. The rest of the longer term indicators in my case are MACD (13-34-89), DSN, OBV & 40 SMA, 40 & 200 EMA's. If all my other Longer term indicators are pointing up then I might forgive Dahl and buy the stock. If a few other longer term indicators are also pointing down, I would move on.
Please remember that most night you would be looking at more then one chart. In fact, there are night when I am looking at anywhere from 10 to 30 charts and I'm looking for a reason to drop as many as I can. My goal is to eliminate as many as I can based on my indicators.
I then may have a small handful of candidates and must decide which one of the remainders I will buy. There are times when I might have two or three left that I just can not decide between so I buy all of them.
That's the problem when you pick just one stock to look at. You lose the feeling of competition. When you are looking at a few stocks you are in elimination mode and this process makes much more sense. You eliminate as many as you can based on the indicators then you buy the remainders.
In the case of TRV, the downturn of Dahl might very well be the difference in buying or not buying depending on the charts of the other stocks I was looking at. If there was another one that looked exactly the same except for a raising Dahl, I would buy the other one.
Did that explain it for you???
Dave Evans |
