Personal Finance

ChartFilter · Guest

After seeing if the DJIA is moving in the appropriate direction (up), a
stock needs to be selected from the list of 30 stocks that comprise the
DJIA. This month we will look at the application of moving averages,
Bollinger Bands and Stochastics on 3 of the DJIA components, read more
about it at http://www.chartfilter.com/newsletters/signals/signals.htm

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Bruno R · Guest

ChartFilter wrote:

Rich... · Guest

First, Bruno, I have to tell you I have nothing to do with ChartFilter (not
even a client), but I know their programs are very useful, and I do intend
to subscribe shortly.
Trading, now. Very simple. You have already cornered the first part, ie
catching the rebound on the 200MA. Great.
If you are long term, you will use a weekly chart. Shorter, a daily chart.
In both cases, you will WAIT for your choice indicator to SHOW you (not from
intraday) it is turning around after slumping.
Again, no one indic. is best. Prior to above, you will have spotted one
stock. You then will have examined its movements. Start by using MACD, then
others, to find out which matches best those movements. Keep the best and
validate with another, or two, or three...
Remember: identify, check, wait, catch when it shows an upward move, even a
subtle one.
Rich...
ps: for even more security, wait for real short MA to change directions (you
can plot them as you wish, ie 2 days, 3, 4, 5, etc. through a number of
websites).

"Bruno R" <p.rosinke@att.net> a écrit dans le message de
news:RRPcf.42352$qk4.22903@bgtnsc05-news.ops.worldnet.att.net...

Rich... · Guest

Lawyer.

First, let me copy here your words, in order to be more precise in my
answer.

''An indicator may tell me a stock is
oversold (YES), but a stock can be oversold a long time (YES), when is too
long (SEE INDIC.)? When is too short (DITTO)? Where shall we draw a support
line (LET a WEBSITE do it) , what time frame (YOURS)?''

SEE INDIC: you have ''too long'' when your indics are turning in the other
direction. You have too short when you do not see them turning. Simple.

WEBSITE: Most have that directly in their charts. I use StockCharts (free).
It is called Price by Volume. You also get resistance lines the same way.

YOURS: Even before buying a stock, you normally know how long you intend to
keep it: one month, 3, 6, 2 years. The longer, the longer your time frame.
(If it is more than 3 months, use a weekly chart).

Rich...

<Lawyerkill@aol.com> a écrit dans le message de
news:1131666972.104560.311900@g43g2000cwa.googlegroups.com...

Bruno R · Guest

Lawyerkill@aol.com wrote:

Guest

Bruno R
I other word event trading speculates around upgrades and earnings
reports?!

LK

Yes and no.

In Peter McKenna book, "The Event-Trading Phenomenon" he gives certain
market condition where when these conditions are present and certain
market events happen, the release of Economy number, he waits for the
market to show the direction it will move and he buys into it.

If I learnt anything, I've learnt that people will overreact, fear and
greed take control, they drive a stock skyhigh or all the way down
because they are either greedy or scared, a few days later the stock
recovers or corrects.

If you're looking for a magic bullet, there is none, no magic
indicators, no magic AI program, no magic, just hard work and playing
the edge, playing the herd mentality against them, and some luck.

I can tell a lot of the herd mentality with candlesticks, are they
running to get into a stock? I jump aboard for the ride. Are they
uncertain? I wait until I get a sign that they have made up their mind.

Indicators are subjective. An indicator may tell me a stock is
oversold, but a stock can be oversold a long time, when is too long?
When is too short? Where shall we draw a support line, what time frame?

Rich... · Guest

Hi Bruno,
Don't mind if I intrude into this conversation?
I do not think there is one, nor 3, nor 10, best indicators.
Find one that tracks the most precisely possible the movement of a stock,
then get another to validate.
Sure, if you plot 10 indicators and they all say ''going up'', you get a
sense of security into buying that stock though.
Aside from that, institutions have their own tech. analysts for whom some
indics are more important than others. They will act upon these readings,
and consequently may influene the price of a stock or a trend. From what I
know, the MACD and RSI are the most commonly used, and therefore, you might
stick with what the big boys are doing.
I did not read the first part of this discussion and I do not know if there
has been mention of volume or EMAs as indicators. If not, these are not
important, but essential.
Rich...

"Bruno R" <p.rosinke@att.net> a écrit dans le message de
news:M3Mcf.74069$zb5.70408@bgtnsc04-news.ops.worldnet.att.net...

Guest

I wish it was that easily, but it's not. Some indicators work great in
a trending market, then fall apart in a non trending market. Jboat has
the right idea, event trading. Other than that I use candlesticks and
just may use indicators to confirm what I see in the candlesticks, then
I check for insider trading to add icing to the cake.

Bruno R · Guest

I don't mind at all, Rick. The first part of the discussion was just
advertisement.

I am familiar with most indicators to the extend that I'm 'dissatisfied'
with all of
them. However, I'd like to know that you, perhaps, favor the MACD and RSI,
which are not that bad, indeed, that I want to criticize any one of them.

I rely mostly on long term chart patterns and often miss out on
potentially good
trades because I'm too early or I forget about stocks I had previously
spotted all
together Lets say for argument's sake that I want to buy an issue at
the 200-day
moving average and it reacts to it.

Which indicator would offer the greatest probability of spotting the
potential
reversal rather than entering too soon and experience a close below the
200 DSMA?

I had hoped folks would indicate with which indicator they've had had
their best
experiences. Thank you for your response, Bruno

Rich... wrote:

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