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

To: Terry Mitchell who wrote (7615)	1/7/1998 12:48:00 PM
From: David R. Evans	Read Replies (1) \| Respond to of 12039

Hello Terry, When you look at StochRSI (14) crosses UP THROUGH 30 you will notice that many of them cross up then fall back down before they finally cross UP THROUGH again and start their run. By also looking at Dahl you may miss some of those false starts. As far as looking at a stock's history. I have found that history does repeat itself. If you have 5 years of data look at all of it. Drew trend lines at the highs and lows and then look at the chart. You will notice that significant highs and lows from the past will serve as Support & Resistance in the Future. If I get a chance tonight I'll put together a chart run through to illustrate this concept. Now if your longer-term indicators are flat or turning down you must make a decision. You have a few options at this point. You could disregard the longer term indicators and buy on the strength of the shorter term, you could put the stock on a waiting list to be reviewed when and if the longer term indicators wake up or you could just move on and look for something else entirely. Deciding which of the above options feels right for you is a large part of developing YOUR system. There is NO RIGHT WAY to do this. There is only the way that is COMFORTABLE for you. If you look at IBM from last night you'll see a very nice StochRSI (14) with Dahl getting ready to give a buy signal. Now that Dahl buy signal may never come BUT if it does you could then hand off your sell responsibilities to Dahl and trade IBM long term. If you were using StochRSI (14) to do a preliminary screen you would have IBM on one of your wait lists looking for a longer term indicator to kick in. Once say Dahl says OK you might jump in. Now does the concept of multiple Indicators and mixed Time frames make a little more sense? There are many ways to play a system like this, which is why I like it so much. Let me know your thoughts. Dave Evans