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Strategies & Market Trends : The Thread -- Ignore unavailable to you. Want to Upgrade?

To: Jo Ellen T who wrote (10550)	8/17/2000 10:10:42 PM
From: Mike E.	Respond to of 49816

Ok, you guys and gals know I don't need much encouragement! (Hell, now that I think about it, Stan would probably have to get that "moderated" feature working to slow me down anyway... <g>) Watley gives %K, %D, and RSI with every tick, and I've been watching them closely for at least a hint as to what to do. I think all you can do is try and use them in conjunction with all of the other indicators and chart patterns. I keep looking for the "more perfect" indicator and I always come back to the realization that if there were one perfect indicator or anything even close that didn't trail behind the price action, everybody would be using it. <g> My latest endeavor was with Moving Average crossovers on a 60 minute chart as used on the Befriend the Trend thread here on Silicon Investor. Unfortunately, while they seem to work well for giving buy/sell signals in a trend they don't seem to do so well for a sideways trading issue. It seems the biggest challenge with that system is constantly screening for "candidate stocks" that are trending and volatile enough. If you do hit on anything with the RSI, et. al. or even think you have let us know. Thanks charlie, stan and all. Nice to see Bryan getting ready to post more as well. Mike

To: Jo Ellen T who wrote (10550)	8/18/2000 6:44:25 AM
From: rocket_no9	Read Replies (1) \| Respond to of 49816

Morning Jo Ellen, A real key thing to keep in mind when considering Stochastics or any oscillator is that they don't work well in strong trends ... In a trend these things will keep reading overbought(sold), generating false signals... meanwhile the stock will just keep moving in the trends direction. It's real important when trying to evaluate a stock to first determine if it's in a range or if it's trending, then plan your trade accordingly.... Hope I havn't stated the obvious it's just that when I figured this out it really made a difference. Oh... Use Adx, directional movement, moving averages, and price itself to determine if a stock is trending or in a range. Havn't found the key you mentioned and am not confident in my T/A abilities to trade from indicators alone, I belong to the Technofundamentalistic school <as a great many of my favorite traders do> Cut your losses, I got killed last week by holding a bunch of losers WAY too long. Good luck, Mike