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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Chris G. who wrote (7287)	12/18/1997 11:39:00 AM
From: Richard Estes	Read Replies (1) \| Respond to of 12039

Weed out? you will always have choices to make, out of 8000+ stocks you will see stocks in all stages of their life cycle. You must filter them down to your style. You must know what type trader, you are. Once you decide that, now you develop a plan or a system to match your style. It helps that the plan be rational and can be tested. Your system won't be mine or Chan's. How do you decide? you look at 100s of charts seeing how your system performs under many conditions. The logic you use could be only stocks on nyse or stocks that have a "z" in their symbols, it is your decision. I try to restrict my database to stocks that are moving (RS) and growing (EPS). William o'neil's HOW TO MAKE MONEY IN STOCKS is a first read for all. Now you have a choice of reducing the numbers by runing an exploration like BBB, this produces recent activity. You now can look thru these to see if your system or the one you are checking out will point out a buy or sell on the results of your first scan. So lets say you have 2800 stocks in database, you run BBB and get 137, now you could look at them in template(s) of your system. Don't expect to get a buy on your system, every day. The stocks from the scan may have given buys on YOUR system 2 weeks ago or won't be a buy for another week. But the process gave you a look at stocks moving on volume near their highs. There is usually a 1-3 day window on a buy or sell. you should react at that time. If you choose DNS then you buy next day after it reads 8, you shouldn't wait a week or two because it is still at 8. All system test results are based on the single point entry/exit.

To: Chris G. who wrote (7287)	12/19/1997 8:04:00 AM
From: Chandler H. Everett	Read Replies (2) \| Respond to of 12039

Chris.......you have of course caught the essence of the trials and tribulations in TA land of trying to find the Holy Grail. The systems and indicators you mentioned are all tried and true, but all give their signals a little late, ie....after the move has begun and much of it has occurred. MAYBE THAT'S THE BEST WE CAN GET!! But I keep trying. Here are a few examples of slightly tighter indicators that I'm working with at the moment. 1. ((PDI(8)-MDI(8))-(PDI(21)-MDI(21))) + (PDI(13)-MDI(13)) 2. LinRegSlope(Mov(WillA(),21,W)-Mov(WillA(),34,W),2)*10000 I check these out against the 8,5 StochRSI and like to see the 5,39 MACD above its 13 MA AND Zero. For what its worth..... BW Chan