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.

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

To: David R. Evans who wrote (7420)	1/1/1998 11:13:00 PM
From: LTK007	Respond to of 12039

Brand new to TA and I am wondering from those that have charted many many stocks just how often is a RSI of 100 correct in indicating a stock will have a lower close the next trading day. Reason is I am going to buy into NWCI,but its RSI ran up and held at 100 on Wednesday,and am thinking I should wait to buy,rather than buy at open on Friday---hey this is a neat thread.max90

To: David R. Evans who wrote (7420)	1/2/1998 1:15:00 AM
From: freelyhovering	Read Replies (1) \| Respond to of 12039

David--I will take you up on your challenge to do a lot of asking. I am sure that my question will be something that was covered before, so I am asking you to send me to the appropriate site if you don't want to repeat yourself. I have never understood the combination StochRSI with the various numbers that are highlighted with it such as StochRSI(14). How do you construct it and run it with TCPro? TIA, Myron

To: David R. Evans who wrote (7420)	1/2/1998 3:27:00 AM
From: shasta23	Read Replies (1) \| Respond to of 12039

HI Dave! I know you're getting swamped with messages but you should consider it an expression of our thirst for the way you present all these complicated things easily and digestable to us. Well i have a few simple questions ;-)))! 1)I think you wrote in your IBM post that you found 30 stocks with the stochrsi(14) crossover. That seemed an awful lot of stocks because as far as i remember you were running in the past only a small database with under 250 stocks. I use Brian Killough IBD 7070 list as base(thanks Brian again!!) and reduced it further to under 250 because i don't like stock under $5. And like yesterday i only had 5 candidates for the crossover since i used as a filter that 13EMA>40EMA. But the whole thing made me think about my database and i thought that i don't really know how people build there databases. You called it step one or the step before one. MAybe you could write something about how to create a databse. I know that this is probably a very complex issue and it might be different for everybody but it would be interesting for a beginner to hear how experienced traders do it. 2)The IBM example was mostly written for Metastock which is besides Q+ the only software i have. You go later in the selection process over to GET to look at e.g. optimized SAR. I use MSWIN 6.5 and there is a canned indicator called Parabolic SAR. Will this indicator serve the same purpose or is there a big difference? 3)Regarding DAHL...you said that you want rising DAHL. So if you have a stochrsi(14) cross over 30 and DAHL is very positive but downtrending ..is that a NONO? And if DAHL is like -4 but uptrending that's OK? 4)I followed your template today with some other stocks and got good results for e.g.BGP and RCMT. BGP has in MSWIN still SAR above price and would according to your system therefore not qualify - is it really that rigourous;if everything else looks good you throw it out if SAR as the only indicator is still negative?just checking! -whereas RCMT looks good even with the SAR. I looked at the RCMT chart and put up like you said the FIB retracement. I connected 8/15/97 and 11/06/97 and found some good correlation between Support and resistance levels. But i still don't know exactly what to do with this info.I can see that the last day broke easily through the fib level which didn't seem to be a serious resistance for that move. But besides the fib lines there seems to be resistance at 17 right where the big upday ended.I can also draw a descending trendline from the high at 11/06 through 12/08 and notice that the close of 12/31/97 finished just above that trendline. So would this be a good stock to go for then? Do you consider things like where the stock is trading in relationship to trendlines and are they in the end decisive which of the qualifying stocks you choose? Maybe you could make a comment if i'm doing this the right way? Thanks again for all the help! Stefan