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

To: steven d. zapf who wrote (9590)	2/25/1999 10:54:00 PM
From: Richard Estes	Read Replies (1) \| Respond to of 12039

I often say leave the party with the one that brought you. But You can find that if you see the market growing sour or in a very volatile market. the position trade of MACD(13,34,89) for entry may require a DMA of 8 with 7 lead might protect more profit. It is a matter of risk. You see your stock go up 20% in a day, you don't wait for profit taking to set in you might lose 2/3s of your profit if you wait out the longer indicator. Risk is the difference between the price and your indicator trigger. It is best seen in MSWIN by putting on each of the 7 MAs using the same periods for a trending stock. Vol and TS will follow closer than Ema, tri, simple or Wma. While variable may run up with it and hold off if there is ranging at the top, wanting to keep you close but in awaiting continuation.

To: steven d. zapf who wrote (9590)	2/26/1999 10:08:00 AM
From: David R. Evans	Read Replies (2) \| Respond to of 12039

That's one way to do it. Another way is to use more then one Indicator to both get into and out of a stock.... Example: I use StochRSI (14) as my first entry point. when I see it cross up through 30 I put it on my immediate watch list for further evaluation. I then look at MACD (8-17-9) and Parabolic SAR. I want both of them to be giving me a buy signal also. I then draw a Regression Channel and want the stock to be breaking out of it. I also look at other things but I can stop now to save space... On my exit I now have a few options. In most cases I would want StochRSI (14) crossing DOWN THROUGH 70 as my exit BUT, there are many times when StochRSI (14) never reached 70 so if I wait I may be sitting with a stock that is moving down.... In these cases, I would be watching MACD (8-17-9), Parabolic SAR, MACD (13-26-9), and my Regression Channels. I may wait for just one of these to tell me to exit OR, I just may want two of them to give me the pink slip. See how it can work??? Dave Evans