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

To: peter n matzke who wrote (9505)	2/20/1999 12:28:00 PM
From: Richard Estes	Read Replies (1) \| Respond to of 12039

I think I agree with what you might be saying. Any indicator that is added to a system must provide added results that you seek. The stacking of indicators or conditions should be done only after reviewing of results of that addition on test on many stocks. A system should be a logical compliation of indicators and conditions. If they are mutipile or one, you should be able to explain the logic and your test results should confirm the logic. There is a fine line between a fast reacting system and one that overtrades and whipsaws you. And the postion system that backs off for normal corrections and keeps you in primary trend. It has little to do with the complexity as the choice of indicators or their mix. INSYNC was built to measure when all the indicators reach a pre-trigger area reflecting oversold and overbought. It was to be used on ranging futures. Futures only trend about 20% of time. It was not a trend indicator. To use it with trending stocks, I use the cross up of 20 as low risk buy, but sell if it returns below. Normal progression of a volatile stock would see it pass thru 50 with ease a failure to do so alerts one to wrong decision. when it moves to >80, a sell will come at the downward cross of 80. If the stock is in a good run, INSYNC should not fall below 40, I buy again on a cross up or bounce at 50 expecting stock to go back to 80 for next sale. If it never reaches the 80. I sell at cross down of 50. With a running stock this bunce off 50 might appear 3-4 times. Is that how you use it?