riggs
313 posts
msg #38982
- Ignore riggs |
11/20/2005 7:32:07 PM
Just kidding TRO! I have personally used THERUMPLEDONE'S RSI(2)screen in a few trades, but to me, it never really gave me a solid foundation for an uptrend. I always seemed to be looking for the next trade the following day. It's a great screen for sliding in and sliding out all in the same day, But I wanted to develop something similar only with great potential for a 3 or 4 day upside, and I think I might have found it...
When you start back testing this, you too will see this filter was tailor made to go nowhere BUT up! DMA (Displaced moving average)helps you see a bit into the future. If prices are falling but DMA(28,-14)is moving horizontally or moving up, then prices will ALWAYS follow. In a word? "Gaps-ups!"
Next, we all know what to look for in a downtrend right? That's right...REVERSAL SIGNALS! More specifically, a "Doji", "Doji cross", or the ever popular three candle pattern "Morning Doji star." Never-the-less, when you see a "Doji", get in if that DMA is 5% above the close. It seems as though the only thing that can hold a pattern like this down is "Bad news." Now the reason I mentioned 'TRO'S' RSI(2), is because this filter seems to work well W/RSI(2)as long as the DMA is well above the close.
If you start playing around with this filter you will see what I see...and that's when the the EMA(3)crosses over the DMA(28,-14. Pure STRENGTH! When do you get out? When the EMA(13)crosses over the DMA. check it out yourself. If the EMA(13)does not crossover, then you are looking at a short term pullback and nothing else. One last thing, when you see the DMA(above)at a 45 degree angle, look out brother! That usually spells "runaway uptrend!" Have fun...
RIGGS
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riggs
313 posts
msg #38983
- Ignore riggs |
11/20/2005 7:42:36 PM
I just noticed a "potential filter error" in the phrase "pattern is Doji." It did not give that to me when I created this 3 days ago, but not to worry, you will see more that your share of "Doji's" in this filter even with the "error" highlighted at the top of the filter. - RIGGS -
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jacobnbr1
37 posts
msg #38984
- Ignore jacobnbr1 |
11/20/2005 8:14:24 PM
hey i did a scan and noticed they all recently sold off first or are at over sold levels, is this what you desired from this filter?? thanks for da input..
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riggs
313 posts
msg #38985
- Ignore riggs |
11/20/2005 8:43:07 PM
jaco -
You will notice in the filter itself, that it calls for "slow stochastics(5,3)is below 25." That would I think qualify for "oversold levels." So yes, it was intended designed that way. Try and get into this filter, and see what happens to OVERBOUGHT levels if the DMA does not follow price, after price has already surpassed the DMA. It then makes for a great SHORTING opportunity. No matter how you tweak it, This filter is just simply AWESOME!
RIGGS.
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jacobnbr1
37 posts
msg #38988
- Ignore jacobnbr1 |
11/20/2005 10:03:37 PM
sure... i will look it over and try playing with it this week. what kind of action should i look for out of this filter? as in they are ready to explode or break out right away or is the filter giving a little time to get setup? also can i put option into the filter for optionable stocks??
thanks
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riggs
313 posts
msg #38989
- Ignore riggs |
11/20/2005 10:25:03 PM
jaco -
What can you expect? I don't think you have done any backtesting yet right? Listen, the only way to get a feel for any filter is to look back 10-20 days or so. That's why I placed "offset # days" in the filter. Or start attatching the DNA(28,-14)to all your chart watching. I will look at about 500 charts B-4 I even put it in my favorites. Do the work, and the filter will grow legs and begin to speak to you. As far as "optionable?" Yes. You can that to any filter. Good luck.
RIGGS
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TheRumpledOne
6,411 posts
msg #38992
- Ignore TheRumpledOne |
11/21/2005 12:05:01 AM
It's not what you trade it's how you trade it!
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riggs
313 posts
msg #38994
- Ignore riggs |
11/21/2005 1:05:05 AM
TRO -
You've got me there...I couldn't agree more. Speaking of "It's how you trade", pull up your 'Javacharts'@ profit.net and hit your 10-day 60 min. chart on your favorite stocks and take a look at the DMA(28,-14). Is that not amazing or what? It's just like I said, it gives you a glimpse into the future! Even you have to agree TRO...
RIGGS
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riggs
313 posts
msg #38995
- Ignore riggs |
11/21/2005 1:17:31 AM
Better make that "PROPHET.NET" B-4 you know who see's it...
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poindexter
21 posts
msg #38997
- Ignore poindexter |
11/21/2005 4:34:22 AM
very nice filter riggs.
I backtested this filter using the price range of $1 - $15 and volume above 1500000 and got very good results.
BTW, did you read "Street Smarts" by Raschke and Connors. The book deals with 3-4 days swing trading and offers several setting I use with a little success (I'm still learning). You might get some ideas from this book.
And as TRO always says - its not what you trade its how you trade it.
(And my problem is with the HOW and especially when to get out without leaving too much of the potential profit on the table...)
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