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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: shasta23 who wrote (13101)	3/7/1998 9:29:00 AM
From: TATRADER	Respond to of 79260

Stefan, will take a look at NRVH later in the weekend, have to download data before I comment...Mark

To: shasta23 who wrote (13101)	3/7/1998 4:02:00 PM
From: TATRADER	Respond to of 79260

Stefan, you make good sense...On NRVH, as ADX was rising, you would have stayed long...However as the stock continued to make new highs, you would have used your Relative strength indicator, to see if it was making a higher peak than the last time, when the stock was at a much lower price...If you look at the Relative Strength chart on the rally into the 45 area, it was a lower peak, than when the stock hit 33.50 beforehand...That should have put on the warning lights...You need to use several indicators to help make a decision on a stock...One alone will destroy you...Likewise, you could have remained short on this stock as long as ADX was moving downward...But you would have also combined the use of the Ultimate Oscillator to help determine the reversal point....( I also use Gann Retracement,Trendlines, Bollinger Bands, envelopes,high volume area studies, moving averages, in addition to oscillators)Remember too, that oscillators are only good on mature trends and sideways markets... Take a look at the Ultimate Oscillator on 2/13/98...It turned up while the price was lower...The low price that day was 33.75...That day I would have said 33.75 is a safe entry price to go long.....As it was , it made it to just 32.75 before reversing itself...I would have missed the reversal by 1.00 cents... Yes, it is a lagging indicator, but when you use it in conjunction with other indicators, it becomes very reliable... Mark P.S. Hope this makes sense...