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

To: David R. Evans who wrote (7633)	1/7/1998 7:17:00 PM
From: Richard Estes	Respond to of 12039

And a reminder: your losses/profits are double in a margin trade. If you won't out at 10% loss then get out at a 5% drop in price.

To: David R. Evans who wrote (7633)	1/7/1998 7:30:00 PM
From: shasta23	Respond to of 12039

THANKS DAVE! Epic post, great examples, one for my printout folder and i bet i'm not the only one who will do it with this one. I actually use the Stochrsi(13) and there IBM even dips under 30 for a realistic buying point. Another observation with this example is that the 5EMA crossed under 40EMA almost at the same time as OBV crossed under the 40EMA. Thanks also for the clarification on stops. About the question what kind of trader i am i must confess that i don't know yet. I started longer term but during the last month the time frame became shorter and shorter. In the beginning of the correction that was still succesful but then every trade went against me until i said STOP! and decided that i need to learn more and become better to go on under these difficult market conditions. I think i like the 2-8 weeks time frame. I know for sure that i'm not a daytrader but i'm also not a buy and hold/investor kind of guy. That leaves the middle part and all it's subcompartments... Thanks again Dave, you help me a lot. STefan

To: David R. Evans who wrote (7633)	1/7/1998 7:46:00 PM
From: Jack Landis	Respond to of 12039

Dave ... A few thoughts for you. Maybe your book should be a walkthrough a stock just as you are doing with IBM.This allows you to talk about various indicators and the timing decistions one must make. Do this for different stocks in different situations and you might just have the best book on trading that anyone has written.Another advantage is that readers with charting capabilities can go along with you to understand the thinking day by day. This reminds me. Before you write your BOOK you might get the 2 stock buy/sell (IBM & 1 other) contest going.How about it? Jack Landis

To: David R. Evans who wrote (7633)	1/7/1998 9:41:00 PM
From: Chris G.	Respond to of 12039

Dave, Excellent post on exit points. Thanks for pointing out the limitation on MS's use of stop losses on 'profits', not the actual loss of initial equity, which is what I had wrongly presumed. Anyway, now that I've got everything in MSWIN working correctly, I've finally been able to setup a system test that exemplifies some of the indicators you originally wrote on IBM (post 7382). Thanks so much on that post as well. It was really informative! I've set up a system test, using RBBB for stock selection, and using only: Alert(Cross(Fml( "StochRSI 8,5"),30),5) AND Cross(Fml( "8,17,9" ),0) as an entry, and Cross(70,Fml( "StochRSI 14" )) only as an exit point. Sticking strickly to this, I've gotten very good results testing it out. When I open the charts, and examine the trades, I would see I wouldn't have entered almost all the loosing trades based on further trend analysis using Dahl &/or Insynch Index, or a downward moving StochRSI14. So my results should be better than testing indicates. Too bad when you add these to the system test, the results are not nearly as good. I guess it shows exactly what you're talking about when discussing the need to look at ALL these indicators to make a final decision on entry/exit. As well as to keep things simple. The MACD 8,17,9 along w. Stochrsi 8,5 are both excellent short term position indicators. Occasionally, the Stochrsi 14 kept me in too long in a sideways chart, but the combination of these short term, and longer term indicators overall is very good. Now I see why you like to use the combination. Thanks again for your help and suggestions! Chrisg

To: David R. Evans who wrote (7633)	1/7/1998 11:31:00 PM
From: freelyhovering	Respond to of 12039

Dave--In your IBM example using cross overs of MACD for buy signals, I am assuming that the signal comes when the 8/17/9 crosses the 9 day moving average and not when the 8/17 crosses zero. One of your sell signals comes when the MACD crosses below zero and it made me curious about the difference. I am looking at the chart on TCPro and the crossings of the 8/17/9 above its average comes a little earlier on 4/2 or 3, but I get the point. This is quite an impressive demonstration of how some of the indicators can help one have winning trades. I can't wait to try it out(after some paper trading studies of course, Andy). Thanks, Myron