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

To: Dale Wingo who wrote (8633)	9/17/1998 8:53:00 PM
From: Richard Estes	Read Replies (1) \| Respond to of 12039

1. That is what indicators tell us, a simple moving average give trend. Our tool boxes are full of trend indicators. You wait until the one you decided to use gives a signal. A up trend of a 89 period MA would be sufficent for most. Simply because a stock was going up in June doesn't mean it will go up at all, through next june. Wait for the signal, don't outguess your system. 2. optimization has little purpose, except to allow you to get in the ballpark for values. You should be looking for a system that matches your mindset and does well on 80% of the stocks. You have to trust it, if you trade it. After looking at 200-500 stocks of all shapes and sizes, you should have some idea. There is something to be said for looking at 20 stocks, but it is very limiting. You sure need to learn to short or go to cash a lot. By limiting your view, you are enslaved to their moves.

To: Dale Wingo who wrote (8633)	9/18/1998 9:17:00 AM
From: David R. Evans	Read Replies (1) \| Respond to of 12039

Hello Dale, First things first... Most stocks will not look great right now.... That's why you need to look at the longer trend to see "Where they were going" before they were interrupted. Once you have separated the ones that were moving up you can BEGIN to watch them for signs of a new move up.... You are ONLY INTERESTED when your systems gives a signal on them..... Your second question is a good one. When you develop a system, it should work for all the stocks YOU WATCH!! What I mean here is simple. If you watch small, thinly traded stocks, your system should work for them. You would not care if it worked or didn't work for the big guys.... If you only watch the big guys then your system must work for them..... I would not advise you change systems to match stocks. What you would be doing then is LOOKING for a reason to buy and that is not healthy..... If your system consists of an MA Xover, you should NEVER buy until you see the MA Xover.... You only buy when your system tells you to. Does this make sense??? Dave Evans interactive.net