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Strategies & Market Trends : The Rational Analyst -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (973)	5/26/1998 10:41:00 AM
From: HeyRainier	Read Replies (1) \| Respond to of 1720

[ DDIM ] Susan, thanks for the added perspective on DDIM. It helps to have input from others like yourself who view it from a different time frame. I agree with your observations on the Sto, RSI and Momentum, though absolute levels from the intermediate term show an interesting story for the issue's momentum and RSI. Fortunately the trend line kept me disciplined. Regards, Rainier

To: Susan Saline who wrote (973)	5/26/1998 11:32:00 AM
From: ftth	Read Replies (4) \| Respond to of 1720

Hi Susan, thanks for you read of DDIM. Perhaps you could explain how you are reading your indicators and the settings, and entry/exit criteria you use. I'm not trying to criticize....just askin' :o). Since you have played this stock numerous times (I haven't), your inputs are much appreciated. You haven't posted here before (that I recall anyway), so I'm not familiar with your methods. Just trying to figure out what makes you tick. As for "the trend is still down," as we all know trendlines are constructed differently by different people. I see a decelerating rate of change in a downtrend of lower lows and lower highs that has now been followed by a ROC reversal and consecutive higher low pivots and higher high pivots, so if nothing else, I at least would say the downtrend has been halted and is neutral, if not turned up (depends on reversal level used). Please explain your interpretation (timeframes, pivot points, reversal criteria) of the trend. Also, are these criteria specific to what you've learned about the behavior of this stock, or is this something you apply similarly across all stocks? As for RSI, again many ways to read RSI, and many possible settings, but I see RSI bottoming in November, basing, and making consecutive higher lows. The lowest low in price was not confirmed by a new low in RSI. Also, depending on whether it drifts or drops quickly down to your $13 target entry point, it would seem RSI may or may not confirm this as an entry level. If the average of up and down closes is neutral over the RSI time window, RSI wont drop appreciably. How strictly do you use your RSI criteria and perhaps you could elaborate on which of the many faces of RSI interpretation you use and settings. What I'm really confused by is why a further drop in these indicators as the price drops further to a level of $13 would generate a buy signal at that point? Seems the price would have to reverse from there and move up some before any of these indicators would turn up (putting the buy point at a higher price). RSI would require a preponderance of up closes relative to down closes over the RSI time frame to turn up from a bottom, which wouldn't happen while it's sitting at a support level. Again, I'm not criticizing--you've played this stock many times and I haven't. Just trying to understand your viewing angle. Thanks, dh PS: which of the many momentum indicators are you using?