Dale,
Thanks for your post, and your interest in the thread. We are making some good money here, even though the market has been having a rough ride. Befriend the Trend Trading is a solid, conservative system. No speculative plays here. Only big, strong, upwardly moving stocks.
To answer your questions:
I abandoned the MACD, not because it is not a helpful indicator, but because I find it to be somewhat too slow reacting for this kind of trading. I hold positions for 1 to 4 weeks, and the MACD, it seems to me (using Clearstation's settings), reacts too slowly to make precise entries.
To find upwardly trending stocks, you can do a couple of things. You can buy the Investor's Business Daily and circle the symbols that have a RS indicator of 95 or better. These stocks have been outperforming 95% of their peers over the last 12 months. Or you can do what I do: Select a group of stocks you are interested in following (I have a prime tier of about 50 issues, and occasionally check on about 20 or 30 others). Look at their charts and ask:
Are prices higher now than 18 months ago? 6 months ago? 3 months ago?
If you can answer yes to all three questions, then you have found a great bull market, and one worth following.
More on next post...TC. |
