12 replies to this topic

[KCScott]

I'm a "converted" fundamentalist and with the market being what it is, I've found myself daytrading far more now than I ever wanted to. I use scottrade elite and wondered what settings you may use. Right now, I'm using: 1 Minute screen - 13, 60 & 200 period MA - the 13 crossover 60 above 200 has worked out pretty well as a buy signal. I can't seem to get the RSI dialed in though - any ideas on the period and smoothing? (Thanks to Hiker, BTW for the 13/60/200 ) I'm using the 10 and 60 minute screens for charting / trending - so far seems OK, but no idea what periods I should be looking at or where the RSI should be. Thanks in Advance. Scott in KC

[Rogerdodger]

Hi KCScott,
This is not a direct answer to trading on short term trading but helpful to finding the daily trend.
There are 3 daily trading systems on my blog which use RSI.
I have them on this chart but you can copy them easier from the blog.
http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=6&dy=0&i=p46174816428&a=94546561&r=6799.png

[PorkLoin]

Hey Scott,

That's the way Stockcharts does it. (You probably know all this.) Welles Wilder, who originated it, advised using a 14 period RSI. If you're using a 13 period MA then that 14 is close. You can plug in 13, 12, etc., and see if you like them better.

I think there's value in keeping an eye on the "stock" method, to see what lots of other people are looking at. You can then filter it against the longer term stuff, like your 60 and 200 MAs. If the longer-term stuff is setting up for a Buy, for example, a shorter-term indicator may enable you to put your position on before the masses looking at the 14 period see their buy signals.

Sounds pretty easy in theory, eh? Nice to have the longer period MAs trending in the direction of your trade, of course.

Best,

Doug

[hiker]

Scott,

you sent me a private message last week asking for clarification of the MA settings, which I answered and:

those you mention above are not the MA crossovers as I described them to you. for more info. on this trading system see the book mentioned at this site...just something I am enjoying using...I have no involvement with this site -

http://www.undergrou...flash_index.cgi

some examples of my chart work... daily and weekly charts using some of the MA crossovers -

http://www.websiteto...post?id=1802821

btw, daytrading individual stocks is the path to minimizing profits in my opinion. now daytrading leveraged instruments like futures is another matter

Edited by hiker, 02 April 2007 - 08:55 PM.

[selecto]

If you dig RSI, then you need to go to stockcharts and run a whole page of different RSI settings, then start drawing lines through price. You will find that some names will run smoother than others, and what works going up is not necessarily as effective going down, and conversely. No matter what ends up looking good to you, you probably will want to run a couple of different speeds anyway in hopes of getting earlier warning. Then, maybe you want a few other things to confirm what you think RSI is telling you. Trading price is art, and RSI is but one of the brushes in the kit. If you are looking for a single crunch system, stop now. (imho) (I have an account at Scott - but only to execute. I do not use their other stuff, much preferring StockCharts real time charting.)

Edited by selecto, 02 April 2007 - 08:59 PM.

[vitaminm]

I'm a "converted" fundamentalist and with the market being what it is, I've found myself daytrading far more now than I ever wanted to.

I use scottrade elite and wondered what settings you may use.

Right now, I'm using:

1 Minute screen - 13, 60 & 200 period MA - the 13 crossover 60 above 200 has worked out pretty well as a buy signal. I can't seem to get the RSI dialed in though - any ideas on the period and smoothing?

(Thanks to Hiker, BTW for the 13/60/200 )

I'm using the 10 and 60 minute screens for charting / trending - so far seems OK, but no idea what periods I should be looking at or where the RSI should be.

Thanks in Advance.

Scott in KC

Scott,

A simple trading system based on price action

Buy when price>5ema>10ema and sell when price<5ema<10ema supported by PSAR indicator //use same setting chart at 5-10-30-60 min-dly,wkly,monthly interval.

Do a paper trading on OIH

http://finance.yahoo...IH&t=...0&a=&c=

[KCScott]

First: Thanks to all - it's appreciated. Rodger - that's a great looking system - is it applicable just to SPX and QQQQ or have you ran it on other issues? Porkloin - I understand the basics of RSI but they seem to apply only to the daily charts. I've tried multiple settings on the 1, 5, 10 & 60 minute charts - and it never seems to "sync" up, if that make any sense. Hence my question. Maybe no one uses RSI on the minute charts? Hiker - I guess I misunderstood that message, but the funny thing is using those settings on the 1 minute have worked out suprisingly well - at least the way I have worked it the last couple days. The only modification, if you can call it that, is I'm either selling or covering at the different pivot points, support and resistance levels noted on the scottrader elite chart. More often than not, those are also close to the Fib levels that I look at in the 8 or 10 hour view. The downside is I'm really unable to tell if I catch a major trend - That's why I was asking what setting people looked use on their ten and sixty minute charts. Selecto - The scottrader elite chart works well for me anyway, as I'm just looking to draw some trend lines, identify some patterns I'm familiar with and trade off it quickly. It's also included in my $7 trades - and I don't have to switch pages. Seems like the volatility in the market is such that 3 minutes can make or break a given trade. ------------------------------------------------- My MO of late is to identify stocks around $50 (or less) that swing in price at least $1.00 or more per day and that trade at least 2 million shares. The goal being to go for .50 a pop on a thousand shares up or down. It's worked out OK. I'm up about 8% total since I started this endeavor. I'm not quitting my day job but it's turning into a nice hobby. Rule one is always capital preservation. Great Trading to all of you.

[KCScott]

Scott,

A simple trading system based on price action

Buy when price>5ema>10ema and sell when price<5ema<10ema supported by PSAR indicator //use same setting chart at 5-10-30-60 min-dly,wkly,monthly interval.

Do a paper trading on OIH

http://finance.yahoo...IH&t=...0&a=&c=

V - Thanks, I just ran that on one of the semi stocks I play. To be honest, the price fluctuations using 5 & 10 EMA only evident (at least to me) on the 60 minute chart. I ran the PSAR also (I had never used that before - did a quick tutorial on it here http://www.traderslo...rabolic-sar.htm) and it gave me totally opposite readings:long on the 60 minute and short on the 5 minute. The auto settings for it are 0.02 and 0.20 should those be modified?

[Rogerdodger]

Rodger - that's a great looking system - is it applicable just to SPX and QQQQ or have you ran it on other issues?

There are actually 3 different systems there.

The 5 day RSI was originally presented by an accountant at the VTO Report (now defunct).
It shows a 381% increase over 9 years compared to "buy and hold" up 108%.
I think it works better in weak markets because it gets you out too early in strongly uptrending markets.

Lots of variables one could apply but I watch resistance, support and trendline breaks.
For example, Feb 27th showed a buy on the indicators but the long uptrend line was violated.

I just set up all three on one Stockcharts chart and then I can plug in any stock symbol.

Edited by Rogerdodger, 02 April 2007 - 10:41 PM.

[KCScott]

OK, here's what happened today on one of the Semi's I follow.

Check the circle - I just happened to be watching KLAC when the 13 crossed the 60 then jumped above the 200 on the 1 minute. (I also got a quick look at the 60 minute screen and KLAC has a 10 week trendline in place) so went long at $53.06. Sold at $53.44 when it ran past the pivot point.

(Wish there was a way I could program it to give me a pop up or alert when that happened)

It's funny that a misread message, kind of put me onto this system - but what the heck, I'll take it

In the interest of full disclosure, I've watched/played KLAC since September when I found Xd's blog, so I've seen it do this more times than I care to remember (including when I was short).

Now just looking for another reliable indicator (or two) to watch.