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ONE TRADING SYSTEM


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#1 mss

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Posted 12 August 2009 - 03:44 PM

Below is a typical daily chart using the 8 & 34 EMAs with the 55 EMA buffer. Note that the 8 EMA broke through the 34 EMA, but did not break the 55 EMA. Therefore my "IT long" stocks and ETFs were not subjected to a "sell" decision. Short term momentum is getting weaker and should be watched close.

http://stockcharts.com/c-sc/sc?s=$SPX&p=60&yr=0&mn=0&dy=20&i=p40366361681&a=170388087&are=6658.png

The first chart after daily is this one. The MACD (3,13,1) suggest momentum of the price and indicates if it is rising, falling, or staying within a range. The RSI (12)indicates OB & OS levels and if they are being worked off or not.

http://stockcharts.com/c-sc/sc?s=$SPX&p=60&yr=0&mn=3&dy=0&i=p17290711907&a=155479641&are=6865.png

This chart is my "tell-all" and is used for viewing total relationship of the 8 & 34 to price and the MACD (3,13,1) momentum. The bottom two MACDs are longer term momentum and are not laggers if you watch levels close. The 3,13,1 MACD cross over the EMAs are meaningless, just the "0" line. Notice several "buy/sell" points identified depending on your personal Risk/Reward level. You can use price to EMAs or EMAs to each other etc.

http://stockcharts.com/c-sc/sc?s=$SPX&p=60&yr=0&mn=0&dy=10&i=p80036327468&a=175274150&are=2148.png

The is the short term conformation/rejection of price and momentum if the EMAs are where you want them.

http://stockcharts.com/c-sc/sc?s=$SPX&p=60&yr=0&mn=0&dy=10&i=p01184224322&a=175360028&are=4223.png

This chart is the proof of short term hourly trade or not. Here it is price verses the EMA, confirmed or not by momentum. The bottom EMAs also lend insight.

http://stockcharts.com/c-sc/sc?s=$SPX&p=60&yr=0&mn=0&dy=3&i=p85647695961&a=175360631&are=7519.png

Keep in mind that I do not normally day trade and the short term chart is for when other charts have told me to "buy/sell" and I am looking for best price point. Usually I use buy and sell price points.

I hope this answered most of your questions, as it is hard for me to write how I trade, because most of it is done according to what I "see" in the charts. Been at it too long, but I really, now need a pure mechanical system.

Questions & comments always welcome,
mss
WOMEN & CATS WILL DO AS THEY PLEASE, AND MEN & DOGS SHOULD GET USED TO THE IDEA.
A DOG ALWAYS OFFERS UNCONDITIONAL LOVE. CATS HAVE TO THINK ABOUT IT!!

#2 Scott-stock

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Posted 13 August 2009 - 08:23 AM

Miss Thank you. Nice post

#3 inamosa

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Posted 15 August 2009 - 02:15 PM

Well done, mss Very generous of you cheers aly
"Our job is not to predict where the market will go, but to interpret daily price and volume action to ascertain the facts of the current environment and make decisions based on that interpretation."
-Scott O'Neil (son of William O'Neil), Portfolio Manager at O’Neil Data Systems, when asked where the Dow would go in the coming months

#4 apprentice

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Posted 16 August 2009 - 07:18 PM

I'm trying to understand the parameters you've given on ema and rsi. I believe the leftmost number in parentheses refers to the number of time periods which are used for the calculation, but i don't know 1 refers to. Also, HL statistic, what do the numbers representing its parameters mean. I am new to financial statistics but have considerable knowledge of the use of statistics in the social sciences. I'd like to feel more comfortable with the language of chart construction so that I can wade into the construction of of charts myself. Any direct guidance or recommendation of reading materials would be most appreciated. Thank you.



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but neither may you desist from it."

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#5 mss

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Posted 16 August 2009 - 07:54 PM

I'm trying to understand the parameters you've given on ema and rsi. I believe the leftmost number in parentheses refers to the number of time periods which are used for the calculation, but i don't know 1 refers to. Also, HL statistic, what do the numbers representing its parameters mean. I am new to financial statistics but have considerable knowledge of the use of statistics in the social sciences. I'd like to feel more comfortable with the language of chart construction so that I can wade into the construction of of charts myself. Any direct guidance or recommendation of reading materials would be most appreciated. Thank you.

Welcome,
At the risk of you thinking I am pushing you off, I think in you went to the link below and did a lot of reading about TA and chart settings most of your questions would be answered.
However I will answer a few, but they will be much clearer when you read the link. The "HL" (0,0) is saying that the horizontal line is set at "0",in this chart case it is what MACD 3,13,1 rotates around. When you read from the link you will understand what the MACD measures. the numbers are my choice in this case.

LINK: http://stockcharts.c...hnical_analysis

Best to you and come back with more questions,
mss
WOMEN & CATS WILL DO AS THEY PLEASE, AND MEN & DOGS SHOULD GET USED TO THE IDEA.
A DOG ALWAYS OFFERS UNCONDITIONAL LOVE. CATS HAVE TO THINK ABOUT IT!!

#6 apprentice

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Posted 19 August 2009 - 04:14 AM

QUOTE (apprentice @ Aug 16 2009, 08:18 PM) I'm trying to understand the parameters you've given on ema and rsi. I believe the leftmost number in parentheses refers to the number of time periods which are used for the calculation, but i don't know 1 refers to. Also, HL statistic, what do the numbers representing its parameters mean. I am new to financial statistics but have considerable knowledge of the use of statistics in the social sciences. I'd like to feel more comfortable with the language of chart construction so that I can wade into the construction of of charts myself. Any direct guidance or recommendation of reading materials would be most appreciated. Thank you. Thank you for your speedy reply to my question. I followed the link you provided and read avidly not only about technical analysis in general but about moving averages, moving average convergence divergence, Bollinger Bands, rsi, and various oscillators. I have also begun to read about candlestick analysis, triangles, and other aspects of visual chart analysis. This is all very relaxing and stimulating at the same time, and I will make every effort to come up to speed as fast as possible. From the reading you suggested, it seems that the "1" in the parameters of some RSI and MACD charts indicates a chart offset one position to the left. Is this correct? Is the purpose of the chart offset to remove the starting average in the series, which is the simple moving average and not the subsequent exponential moving averages? Are there any especially important books or message boards or journal articles you could recommend to me to put me on the fast path for technical analysis skills development? And are there any services you could recommend on which I could apply technical analysis to historical and current market data so as to put the theory I'm learning into practice?I already have some technical analysis capability with Etrade, but I wonder if there's something much better which will help me without putting me in the poor house. Again, I thank you for your great kindness in guiding me toward greater and greater proficiency in technical analysis. Sincerely, Rich, the "apprentice" of Rich and Sue, the "apprentices"



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but neither may you desist from it."

--Talmud

#7 mss

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Posted 19 August 2009 - 07:06 AM

[quote name='apprentice' date='Aug 19 2009, 04:14 AM' post='478593'
From the reading you suggested, it seems that the "1" in the parameters of some RSI and MACD charts indicates a chart offset one position to the left. Is this correct? Is the purpose of the chart offset to remove the starting average in the series, which is the simple moving average and not the subsequent exponential moving averages?

Are there any especially important books or message boards or journal articles you could recommend to me to put me on the fast path for technical analysis skills development?

And are there any services you could recommend on which I could apply technical analysis to historical and current market data so as to put the theory I'm learning into practice?I already have some technical analysis capability with Etrade, but I wonder if there's something much better which will help me without putting me in the poor house.

Sincerely,

Rich, the "apprentice"
of Rich and Sue, the "apprentices"
[/quote]

The site you went to has all sorts of info for what you are trying to do, including charts (free) daily and weekly updates and analysis of different charts. There is a public chart section with explanations of each, has several hundred charts which are updated.

HERE IS THE HOME PAGE LINK: http://stockcharts.com/

The INDEX will give you a world of info.

The question about the "1" offset is just on the individual average and it can be to the right one point, or to the left(,-1). Does not change any numbers -just moves the end point forward or backward.

As far as books etc., post the question on the FF board here and you will get a long list of the favorite books, everybody has one. :D

mss
WOMEN & CATS WILL DO AS THEY PLEASE, AND MEN & DOGS SHOULD GET USED TO THE IDEA.
A DOG ALWAYS OFFERS UNCONDITIONAL LOVE. CATS HAVE TO THINK ABOUT IT!!

#8 dasein

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Posted 29 August 2009 - 01:41 PM

i thought there was a list of favorite trading books at the Investor Univ, but seems not - i am pretty sure years ago mark made a survey, maybe he will find it and post a pointer to where it is...

in the meantime, you can get started here
http://www.traders-t...php?showforum=5
best,
klh