Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (15389)	9/10/2002 2:40:52 AM
From: kirby49	Read Replies (1) \| Respond to of 81193

Hey, if I could explain this better and more concisely, I'd be making a pile of money writing a TA book<GGG>. I did try and explain it on Cush's thread about a year ago with the same amount of success, and just because I see it doesn't mean that I can explain it so others see it too. The ADX line is a smoothed average of the + and - DI's. Below 20 it signifies a sideways trending market. Above it signifies trending up if the +DI is on top or down if the -DI is on top. As long as it's above 20 if it's moving up, it signifies the trend is strong. The important thing is that when it turns down, it doesn't mean the trend is changed, just that it has lost strength. So at the first of October when it turned down it didn't signify a major change in trend. As well as when the first of June this year when it turned from that high level there was no long term change in the trend. The only time to get nervous was perhaps the last two weeks of July when the DI's crossed, but that was not confirmed by a cross with the ADX. All that goobldygook just means that by following the common sense that you have, you have done the right thing by holding. Mostly you and I are alone here, for I no no others who have held as long as us. I was lucky to get in April 2, 01 and anyone else who has been in since Nov 00 has done even better. Anyone in much before that was just a permabull goldbug hoping to recover previous losses<LOL>. Let's go back before Apr 01 having changed the second indicator to Slow Stochastics. stockcharts.com[h,a]waclynay[df][pb50!d20,2!f][iLl14!Lh14,3]&pref=G ADX below 20 and could have bought mid July and sold mid September and rebought mid Nov. In fact as the -DI was on top it would have been better to state that as covered, shorted and covered and that last time when the ADX moved above 20 and the +DI turning to the top not only covered, but change to long. As well change back to MACD. For swing trading, we should have sold both last summers and this summers consolidation periods and bought back in last November and of course last month. So it's those indicators for the trading signals and the ADX with the directional indicators for trends. But it's not a hybrid as they are meant to be used in conjunction. The caveat that I put on all this is that I don't trade that index, but individual juniors which are not liquid enough to trade ----yet. So this exercise is important for when we want to leverage these individual stocks. Bought this last June at .46 and didn't sell that spike last fall as my Dad taught me not to sell your gold at the beginning of a war. He was a POW in Germany for 3 years and survived the Depression before that by working as an electricians helper in the mines of Timmins though he had graduated as a professional engineer. Otherwise I like Descending triangles bouncing off support which are coiling and the 50/20 cross last summer confirms that it should be held. stockcharts.com[h,a]waclynay[df][pb50!d20,2!f][iLl14!La12,26,9]&pref=G Hope this hasn't muddied up the waters. Regards Bob