SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
Recommended by:
ajtj99
skier31
To: skier31 who wrote (88023)10/10/2024 1:14:17 PM
From: Sun Tzu2 Recommendations   of 96944
 
There are two types of trade that I do: trend following, and counter trend.
Trend following is when they go above 60 or fall below 40 (I know most people do it the other way around). Counter trend happens when both of these guys are below 8 (ideally below 5) and then turn around.

However this was not the point I was trying to make.

A big question (for me) is always whether we are in a BTFD mode or STFR mode. That question is decided by the black and red indicator (sorry for the shitty graphics, they looked better on my screen). If you follow that, you see that it follows the business cycle pretty well. While the business is in a down cycle (i.e. the red line is hovering near zero) any run ups (pointed to by the purple line) are short lived and typically not very profitable. But once the business cycle comes to life, you see longer and faster run ups in the stock and you can be more aggressive in buying it. It is during this phase that you should ladder up using the purple indicator.

That is the question I was answering, how to ladder.

EDIT - One last thing: as I often emphasize, your choice of timeframe is foundational. In that chart, the timeframe was chosen to encapsulate the business cycle. Obviously if I ran it on a 1 minute bar, it would not have held true.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News