7 replies to this topic

[Rogerdodger]

I posted below that Carl's decision point was the #1 bond timer for the past year.
He's using a 20ema, 50ema, and 200ema "Trend" method.

Then I read John Murphy at Stockcharts touting a 13/34 ema.

Now I notice at Philsgang.com Spotlight a lesson using "W" formations and the 25ma, 50ma and 200ma.

NEW STUDENT W CHART ALK LESSON Trading Stocks using Relative Strength Methodology with W formations, Stops and Profit Centers. Relative Strength- stock is going up as the market is going down
Momentum- both the stock and the market are going up together WHITE line - 200 day moving average
YELLOW line - 50 day moving average
PURPLE line - 25 day moving average
GREEN line - is the stock
RED line - is the index

CHART W..For new members this is a very important and basic pattern to learn. If all you did is wait for one of your 20 stocks you follow to form a pattern like this and use a stop under the moving average. You would do well! W pattern with confirmation. In this example the confirmation is at the blue line. Remember if the W is under a moving average you wait and buy when it breaks out up through the moving average. When a W is far from a moving average you enter your order when it completes the confirmation or breaks above the blue line.

Edited by Rogerdodger, 04 February 2007 - 09:05 PM.

[selecto]

In a trending market you can use just about any set of averages you like; sooner or later you get a good signal.

[Frac_Man]

good point

In a trending market you can use just about any set of averages you like; sooner or later you get a good signal.

[Rogerdodger]

In a trending market you can use just about any set of averages you like; sooner or later you get a good signal.

Exactly!
As Carl says: "a mechanical model that I call the Trend Model, so named because it is driven strictly by trend-following tools, and relies only on the movement of the price index to generate decisions."

I think that's why they are showing up everywhere.
It probably says more about the market than the method.

Edited by Rogerdodger, 04 February 2007 - 12:57 PM.

[Rogerdodger]

Speaking of Basics, here is a good printable trading lesson on

The Directional Movement Oscillator from MoneyShow.com.

There are 5 Top Trading Lessons on the right side of the page and an archives list below that.

[mss]

Some of you might remember that I brought the 8ema & 34ema to this board in '03 and have used and suggested several other sequences 3/5, 3/13, 5/21, and other combinations as well as the Ratio for trending of price. I quess most wont. mss

[OEXCHAOS]

I remember. Mark

[Rogerdodger]

LINK: 8ema & 34ema is officially called:
"The Ole MSS 8/34 crossover".

(Everybody has heard of Ole Mss.)

Edited by Rogerdodger, 04 February 2007 - 06:27 PM.