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

To: Craig DeHaan who wrote (21933)	10/9/1998 2:29:00 AM
From: Doug R	Read Replies (3) \| Respond to of 79240

Craigster, Ok, here's the background. I found this hot little pattern in the 3 dRSI. I originally used it to nail continuations of strong breakouts that I had missed (what the heck, ya can't see everything that all stocks are doing every day). The continuation signal is what I call the 3 dRSI trick. Well, to make a long story almost short, these breakouts last a minimum of 3 days. Some go as long as 5 days. As the breakout progresses over these 3 to 5 (I've even seen a few go for 6) days, the 3 dRSI becomes "pasted" to the max value range. This range starts at 97 to 97.5 and as the stock runs the 3 dRSI value increases each day to well above 99. As I'm sure you're aware, for a 3 dRSI to continue moving up once it has gone above 97.5, the stock price has to get on its horse. The first day (when the RSI pops over 97.5) is the largest % day with days 2 and beyond being mucho icing on the cheezecake. The comkey is a scan I'm working on in cooperation with several dedicated technicians that will be able to hit, in advance, stocks that will see the 3 dRSI pop over 97.5 and continue being "pasted" for at least 2 more days. The 3 day RSI trick is used as a signal for continuation after this pasting period has occurred. In other words, once the pasting is complete, there will be a period of profit taking followed by another move up. The signal on the trick nails the next move. It's based on the premise that when a stock gets the degree of investor enthusiasm that it takes to paste the 3 dRSI for 3 or more days, the move up that follows profit taking will also be one of a significant %. Finding the comkey therefore brings the 3 dRSI trick 2 steps back in order to find the necessary technical preconditions that lead to the pasting with a focus on a trigger. Once this has been accomplished, a killer 3 part strategy can be utilized: A: go long on the paste trigger. B: sell AND go short on the final paste day. C: cover the short and go long again on the 3 dRSI trick signal. It's even better than the IL/ACT dynamic in that the IL/ACT pinpoints the first trade as a short and the reciprocal retracement off the ACT pinpoints when to cover the short and go long. With the comkey/3 dRSI trick dynamic, you get to start off long then go short then go long again all in a span of 2 weeks or less while timing each trade to the day (or even hour if your watching that closely) Ok, enough background. Here comes some e-mails. Oh, and please affix this lab ID to your lapel. I'm terrible with names. It will help me address you properly in the halls as we pass each other >>gg<< Doug R PS, Warthog, could you supply several examples (they don't have to be recent) of the 3 dRSI trick to Craig via PM TIA.