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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?

To: bcrafty who wrote (61562)	6/13/2002 10:37:14 PM
From: Dr. B. ®	Read Replies (1) \| Respond to of 100058

Bcrafty, What time period do use use? EOM

To: bcrafty who wrote (61562)	6/13/2002 11:39:53 PM
From: gongoman	Read Replies (1) \| Respond to of 100058

Bcrafty Are you back on them, or just daytrading them ?? I have been thinking about trying to get on them on a pullback and just swing for the day , rather than get loyal. The only problem with that is , ya got to sit in front of the screen all day

To: bcrafty who wrote (61562)	6/14/2002 12:40:41 AM
From: FLACK	Read Replies (2) \| Respond to of 100058

bcrafty "That's where moving averages help...watch for a crossover upwards before you buy, confirmed by a stochastics cross or a MACD rising above zero...I used 5 and 8 emas but you can experiment with others until you find ones you like (3&6, 5&10, etc)." Your 5&8 EMA combination appears to be a good one, one that I've never used on a daily chart. As you mentioned, EMAs are not a stand-alone indicator, and even though I think your 5&8 sounds fast, at several points on the chart it's actually slower than the stochastics and MACD making it the LAST confirming indicator. At other times it appears faster than the stochastics and MACD. The interesting point of this IMO, is that waiting for a combination of EMS, stochastics, and MACD leads to capturing the longest and most profitable moves. Also interesting is the 67-68 area which was resistance in February became support in April. This exercise also brings to mind another of my rules, namely following just a few stocks and their indexes. This enables one to become familiar with them, which in turn allows us to experiment with different indicators and variations thereof. For example, if one of our fav stocks is a slow mover, we may find that one set of MAs or EMAs works well as a buy signal confirmation, while a different set works well as a sell signal confirmation - keeping us in the position for a longer period of time. Another MA combination that I like on a daily chart is the Moving Average Channel, which requires even more patience since we must see 2 days either above or below the channel that would indicate a buy or sell. As always, it's a time/patience thing. The combination of these three indicators will prove profitable. They will not catch tops and bottoms but IMO, winning in the market can either be risky or less risky. I prefer less risky and I'm willing to settle for what the market gives me. I'll leave the heroics to those who need the thrill. Capturing the bulk of the big moves is akin to hitting a baseball or a tennis ball - if we hit the ball in the sweet spot, we going to drive in more runs and return more shots. The sweet spot for a trader is that large area between the tops and the bottoms. If we try to hit a home run every time or attempt to hit that backhand down the line over the highest part of the net, we're more apt to fail. The sweet spot is not sexy like calling the next move. But it pays pretty well. As always, thanks for your great posts! FLACK (AKA old smokey)