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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Stoxx who wrote (3318)	3/14/1999 9:51:00 AM
From: Dr. Stoxx	Respond to of 39683

REVISED BTTT TRADING SIGNALS: Spent all day yesterday on the computer looking at charts (we are now subscribers to IQC Charts, which supplies real-time data and charts for about $30/month) and this is how I have decided to trade for the next few weeks. The same standard 3 rules apply, only now with a couple of "tweaks" added: 1. Gather a pool of strong stocks, generally uptrending, but with sufficient volatility to allow for clear entries and exits, and with the possibility of riding down short positions in market weakness. 2. Check the weekly charts for MACD position (12-26-9). Not histogram, but the simple fast-slow lines. When the fast is above the slow line, trade the stock only long; and when the fast is below the slow line, trade the stock only short. Best signals are given closest to the crossing point, and from either below the 0 line (for longs) or above it (for shorts). 3. Go to the daily charts. Use Slow Stochastics (5-5) to determine entry. A rise to 75 signals a sell; a drop to 25 signals a buy. Once these numbers are hit, we can assume a trade is "on". All other values signal "stand aside". 4. Go to hourly charts and set an entry price target at the low of the previous day's trading (for shorts) and at the high (for longs). 5. Set a stop loss at one tick above the day's high (for shorts) or below the day's low (for longs). These rules are adapted from Elder's "Triple Screen" system, but have been changed to accomodate my own trading style (and lack of sophisticated equipment). Comments and questions welcome, as are any stocks meeting these criteria (see next post). Good luck, TC.