How about some different indicator/system fun?
(since you're not trading... LOL)
I'll try to spark some interest here again with a little tool I came up with. Everyone feel free to tear apart the logic, cuz thats what this thread is for, Right? My goal is to add another layer of logic to, or indicator to "it" helping confirm signals. I already know its not made for trending markets. Here are some basics:
I have a ST overbought and oversold indicator that I call SRV. It has historical high and low ranges that the market seems to turn from. It seems good for calling 2-7 day swings in the S&P 500. Its NOT to be used alone, like most little indicators though. I'll try to do my best to relay how I find it useful in the coming days. Enjoy!!
When it turns up or down from historical levels a warning or signal is given. Anywhere above 25 is a "high" level, and good "lows" normally form ~ -30.
Right now it says we're in a "danger zone" where the market COULD be near a ST peak based on historical levels, BUT a trending market will wack this thing out. I find it best to use a trendline, stop, or somthing else to get you in or out when the trend is your friend, like recent activity seems to indicate. I find eventually divergences take place when the trend starts to peeter out and then finally the market corrects.
Here is some data:
01/30/98,16.0
02/02/98,28.4
02/03/98,28.7
02/04/98,27.9
02/05/98,26.7
02/06/98,23.8
02/09/98,12.4
lets have fun $$$!!
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