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

To: CatLady who wrote (10546)	6/6/1999 1:59:00 PM
From: Mel Long	Read Replies (1) \| Respond to of 12039

Anyone: Is there a site (other than Quote.com) that will email alerts to you when a stock reaches a price? Thanks.

To: CatLady who wrote (10546)	6/6/1999 2:31:00 PM
From: Christopher	Read Replies (3) \| Respond to of 12039

CatLady, For the longest times as I read books and found one money manager after another hail Relative Strength as the best indicator there is I was always in awes because I did not understand how that could be. When I fully understood Sector Investing I am now a strong believer that Relative Strength is the best indicator ever. To answer your questions, NO I don't use entry to stocks based on indicators buy/sell signals. From my readings I found that institutions have suffered great pain and losses doing that. This may go against all that you believe but let me explain. Let us say you are using Stochastic and it gives a buy signal. If you want to buy Stochastic itself as opposed to the stock then by all means go for it. However, if you want to buy the stock then you should only buy it when it gives the buy signal itself as opposed to the Stochastic giving the buy signal. I have mentioned concepts before because it is so important. Based on the concepts you have you shall stand or fall. We can go really into depth talking about this subjects. Different situation may require different treatment but generally this should be the rule. Let me give you an example in the next paragraph. Let us say you are looking at a stock where ADX is 20 and going up. In this case you should be using trend following indicators like MA as opposed to oscillators to buy the stock. I will buy the stock if it has closed or it is above its 20 dma. Closing above 20 dma would be a buy signal given by the stock itself. Also I would buy the stock if it closes above its trend line assuming it was below in the first place. That would also be a buy signal generated by the stock itself. A buy signal generated by an indicator is of no use if the stock keeps going down and does not generate a buy signal all by itself. If you are using oscillator in a trading range the buy signal would be different(we have to discuss another time. But you still have to look for the stock to give a buy signal). How you view indicators is very important. The study of TA is all about trend reversal. If the stock is going down and indicators shows that it is gaining momentum then the stock has to confirm the indicators by giving a buy signal itself. This could be done through MA, trend line, and so forth. This is how I do it and you can do it anyway you like. It is your money after all. Good trading, Christopher

To: CatLady who wrote (10546)	6/6/1999 2:46:00 PM
From: Christopher	Read Replies (1) \| Respond to of 12039

CatLady, I am an intermediate term trader. I try to hook up to stocks as early as I can to get the most I can from the move. However, there are cases where you can use indicators for buy signal for example, If ADX hits 30 and it still going up that would indicate that the stock is in a very strong trend. You can buy it and try to make some money. I don't do that because I feel that the stock has already made a big move. If you are a day trader then these stocks may not be too bad if you want to trade them. Cooper has a book on Momentum investing where he looks for stocks like these and uses I believe Stochastic for entry and exit. I myself do go that route. Christopher