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

To: David R. Evans who wrote (7468)	1/3/1998 10:07:00 AM
From: Jack Landis	Read Replies (4) \| Respond to of 12039

Dave...(& Andy,Richard,Chan,etc.) I have never received a response to what I feel is an important question I raised several days ago; "When using indicators like stochastics,RSI,MACD, why only take buy signals when the indicator rises through a threshold like 20 or 30?" I can find many cases where the indicator turns up from a high level like 50 and starts a highly profitable move.In fact these are strong trending stocks that are just coming out of a pullback. And why sell only when moving down from a high level? What if a stock gets a buy signal and never makes it above 80 on the indicator. When do you sell? Jack Landis

To: David R. Evans who wrote (7468)	1/3/1998 10:59:00 AM
From: Jan Robert Wolansky	Read Replies (4) \| Respond to of 12039

Dave, I understand what you are saying, but am a little uncomfortable in using only current 80/80's for the purpose of backtesting. If I've developed a system that identifies trending stocks, shouldn't its true test be in picking out stocks from a database of 5000 during backtesting? If it's a good system, it should only pick out the trending stocks that continue to go up--some of the picks will be 80/80's, and some will not. I guess one way to get to your position would be to backtest on historical lists of 80/80's, for example, run the Metastock Explorer back on February 1, 1997 using a list of 80/80's as of February 1, 1997, but I don't have these historical lists. Do you? I do agree that for trading, there's much to be said for sticking to the 80/80's since the probability of these continuing to go up is probably higher than others. Jan

To: David R. Evans who wrote (7468)	1/3/1998 12:21:00 PM
From: feewaybill	Read Replies (1) \| Respond to of 12039

Hi Dave, Here's a chart of TRV. geocities.com Our StochRSI(14) has just broken up through 30 to signal a possible buy. Most of our other indicators are looking pretty good.(moving up). My question concerns dahl. As you can see its above 0 which is good. But for the last 2 weeks it has been headed back down toward the 0 line. Do we like dahl to be moving up, like our other indicators? Or since its still above 0, is it still OK?.......Bruce