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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (11979)	1/29/2002 8:52:38 AM
From: herry iball	Read Replies (4) \| Respond to of 23153

G, on the intraday, there was indeed a false signal given at 10:50 with RSI and Stoch. turning up, and D+ crossing the ADX to the upside. But I was also watching time and sales, and at that point, it looked like nothing more than a bear flag so I held off. Watching T&S it seemed like there was some panic selling, and in that environment, the first snapback often fails, especially on such a strong stick up. In fact, it seems that when ever this stock has a strong 5 minute move, it sells off afterward (1:35, 2:25), so it looks like there are plenty of daytraders scalping this stock. I also watch everything on multiple time frames as well to get clearer signals. On HC, if you look at the 15 minute chart for yesterday, you will see that it didn't get quite oversold enough for my taste.....and that is because looking back on how it has been trading, you will see that no snapback was in order until you get the confirmation on the 15 minute chart. Other stocks trade differently depending on whether it is in an uptrend (often bounces when, say, RSI gets to around 50), or in a downtrend. In the end, If I had gotten in too early on that false signal I would have been stopped out, since I would have raised my stops as the price moved up. That's why I love IB....commissions are so cheap, and executions so fast, that I don't worry about getting in and out quickly. Speaking of such things, watching CPN here as it approaches oversold territory on the daily. Looking back, it seems the stock doesn't rally until RSI hits mid to low 20's, and ADX still sez the current trend is intact (down). I scalped it yesterday when RSI hit 12 (!) intraday on big volume, and traded a stick completely outside the bollinger band. That kind of stretching of a stock (normally) requires that it snap back, if nothing more than a technical bounce, which was good for 30-40 cent scalp up to resistance on the 10dma. When the price gets that far away from the 10dma, it's worth watching for the snapback, even if it lasts only 10 minutes. Hope this helps. I know I'm more of a scalping kinda fool, but you can use the same rules on extended time frames such as 60 minute or daily. Which I do for extended plays. Cheers.