Questions on your daily chart settings
#1
Posted 02 April 2007 - 06:55 PM
#2
Posted 02 April 2007 - 07:42 PM
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
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
#3
Posted 02 April 2007 - 08:15 PM
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
#4
Posted 02 April 2007 - 08:53 PM
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.
#5
Posted 02 April 2007 - 08:56 PM
Edited by selecto, 02 April 2007 - 08:59 PM.
#6
Posted 02 April 2007 - 09:50 PM
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=
#7
Posted 02 April 2007 - 10:00 PM
#8
Posted 02 April 2007 - 10:25 PM
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?
#9
Posted 02 April 2007 - 10:38 PM
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.
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
#10
Posted 02 April 2007 - 11:03 PM
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.