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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: bdog who wrote (30506)	6/27/1999 1:18:00 PM
From: Doug R	Read Replies (3) \| Respond to of 79237

Bdog, Dave H is the man. You wouldn't believe how happy Tom DeMark is to see him back on the thread. I mean really happy. Ok...time to start moving on the Seattle seminar. If there's a Renaissance Hotel near SEA, that's where it'll be. I'm looking at August 28. How does that sit with you? Doug R

To: bdog who wrote (30506)	6/28/1999 7:46:00 AM
From: Dave H	Respond to of 79237

bdog, You did mean close is lower than close 4 days ago for buy setup, right? We are looking for trend reversal or continuation? YES, you are right! Nice catch there! For a buy setup, you have 9 consecutive days where the close is LOWER than the close 4 days prior. re: USAD & the 13,34,89 MACD crossover before perfection.... THANKS for the research here. The buy signal typically comes on the day of sequential completion, with the caveat that the sequential may not actually remain valid (i.e. it could "recycle". recycling means that the sequentail does not perfect, but instead just keeps on going down and you end up having another buy setup created. This kind of action shows a tremendously strong selling period, but it is really not uncommon to see, so I personally would not act blindly and buy a stock just because it completed a sequential. The perfection day is one way of helping mitigate the risk,but as you can see with the two examples USAD and STMT, the perfection day was where most of the gain came in. So, I am in the process of looking for other signals for confirmation. One of them are well defined trendlines for support, also to use for stop loss points. Another are something called "TD Steup Trends (TDST)" which are simply the horizontal line drawn from the highest high during a buy setup, or the lowest low during a sell setup. These lines seem to to a great job with showing continued support and resistance, and I like to use them both for additional support lines as well as technical targets as resistance lines. Regarding backtesting, I plan to start setting up more features in my scanning program so that hopefully I can start doing some back testing like you suggest, (i.e. using additional indicators to help out filter the MANY sequentials that complete each day!) thanks again for catching my mistake in the sequential description! -dave