Schaap Buy Signal on S&P500
Started by
borland
, Jul 14 2010 08:12 PM
2 replies to this topic
#1
borland
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Posted 14 July 2010 - 08:12 PM
Today's close gave a Dr. Schaap's 50/50 Trade Strategy Buy signal. Seem like a short term top here, so the buy now seems a little odd.
Learned about trade strategy recently from Maurice Walker's charts on stockcharts.com public charts section (page 5 of 13).
Simple strategy, long entry requires close above 50MA with 20RSI above 50%.
#2
alohamart
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Posted 15 July 2010 - 03:36 AM
Despite the win the last time, this strategy has actually lost money on the long side over the last 10 years -- hardly a reliable buy signal.
#3
diogenes227
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Posted 15 July 2010 - 08:22 AM
Where's the stop? A close below the 50 and a RSI close below 50, like maybe today or tomorrow?
This is a setup for a lot of whipsaws. Better to walk a rising 50 than bump into a falling 50, me thinks. 
"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).
“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”
"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."
