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

To: Loren who wrote (7482)	1/3/1998 10:43:00 PM
From: Loren	Respond to of 12039

Jack - Thinking a little more about it, I'm guessing that you are mostly using daily data. Is this correct? If so, it would be normal to trade the oscillations in a stock, rather than trying to piggyback on trends. That said, stochastic or RSI would be a normal choice for you. To All - Are there others on this thread which are concentrating on WEEKLY data, using trending indicators? I use SuperCharts, and I've done a lot of system optimization on DMI/ADX and MACD indicator systems. I'd like to compare notes with anyone with similar interests. Loren

To: Loren who wrote (7482)	1/4/1998 9:49:00 AM
From: Jack Landis	Respond to of 12039

Loren.... The level of the indicator (I use 5 different stochastics) shows the amount of trending in the last "x" periods while the change from period to period shows the trend. For example if the 34.8 stochastics is at 20 and moving up it shows that a significant decline has taken place but now the stock is in a recovery phase. On the other hand, if the 34.8 stochastics has moved down from 70 to 50 and is starting back up this is an up move in an uptrend. The Stochastics,RSI and MACD perform like moving averages except they are normalized to a 0 to 100 scale so that all stocks are comparable to each other regardless of price level. Just remember that a strong stock can move above the 80 level and stay there for a long time. Likewise a weak stock can stay under 20 and be a short candidate . Hope these thoughts help Jack Landis