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corsino
259 posts
msg #49784
Ignore corsino
2/2/2007 7:40:40 PM

UNITED
Well,this thread is about Fast %K, so I don't want to change the topic, but you can try using Wallman's filter and add something like "and slope of linear regression channel(45)above 0".
I expect that by now you know, or can find, the basic wording for filter construction.An idea would be criteria like " price reached a new 9 month high within the last 4 weeks and price touched bottom linear regression line(45)within the last 2 days".Or try making a filter with RSI(60)above 50 and price touching bottom linear regression line.
But regardless of the filter, I wait for a white candle before jumping in.
I hope this helps.



bielyplafon
42 posts
msg #49792
Ignore bielyplafon
2/3/2007 6:18:21 AM

Hi all following Fast%k or any other bargain hunting filter,

I want to ask about the entry points you are using. Actually, what I do with Fastk is that:
- I look for the once where the rsi(2) is low and fastk is high (as described by Muddy)
- or also fastk is low but there is long bottom tail and volume increase
- and nice average day range(10) (but Iím avoiding stock having long red candle within last days)
- and I wait for sma10/sma60 cross on 5minutes chart and for volume spikes happening last 1-2 days (like 70-100ths share traded in short time comparing to average 10ths)
- and waiting for green

My problem is that sometimes I get stuck with the shares because they donít move higher. See THC that appeared on the filter 26-Jan. I bought 29-Jan at 12:15 for 7.17.
My question is how to improve the entry point or anything else to increase success. Any ideas?

Of course the answers can be:
- put a time window allowing price to move up (and I have Ė if it doesnít move in 5 days I sell it) and/or
- use stop/loss to prevent losses (and I do) and/or
- donít try to have bullet proof systemÖ Well I do try. Although perfection canít be achieved we have to aspire for it. Thatís the way how to improve.

Thanks for all valuable comments
Regards
bp

p.s. Thank you Muddy for all the free lessons.



Muddy
55 posts
msg #49793
Ignore Muddy
2/3/2007 7:54:11 AM

Bielyplfon,
First off I really like your method/s of choosing which stocks to radar with the Fast%K filter.
They are well thought out and I follow much the same routine in choosing swing and longer term holds.
In answer to your question of a possible way to improve entries,this is from my blog:

Tuesday, December 5, 2006
ENTRIES and EXITS

I get a lot of questions regarding this so i'll try to explain how i do entries and exits.
For entry points on the UBB zone pullbacks the night before i draw top and bottom trendlines and determine the MidPoint,this is my entry point on A GREEN HOLD,that is the stock must be up at the time of entry,some stocks prices are below this MP and i wait for it to cross it.Others the price is already above this MP and i simply wait for the stock to go GREEN.
For entry points on the fast%k filter i draw the same top and bottom trendlines and determine the MP
BUT there's a difference in my determining the ENTRY point on these DOWNTRENDING stocks as opposed to the even or uptrending UBB pullback charts.After i get the MP from the trendlines on these i look to see if the stock is in a gradual decline as opposed to a steep 1 or 2 day drop.If its a gradual drop i take .93 x's the MP and that is my entry point on GREEN hold.So say the MP is $1 then the entry would be at .93 on GREEN. If the stock is sitting at say .90 then it will have to move only .03 instead of .10,thus giving me the advantage of getting some confirmation yet not giving away that .07 move (my profit now) from .93 to the actual $1 MP.
With stocks that have a steep 1 and/or 2 day drop from the fast%k filter i times the MP by .85

As for exits i usually apply a 3-4% MENTAL stop with a trailing stop of about the same % if the stock goes up. Please remember NO filter will trade for you,a good one only gives you good watches,the trading is up to you to find the best way for you

Posted by Muddy
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

This method many times avoids the sideways trades such as THC,as it gives a running start to its bounce off the low FastK number,giving conformation of a real move upwards,yet not giving away too much lost profit after its initial bounce.

For THC on 1/29 I would have been looking for a GREEN hold entry at 7.30,since it only reached 7.19 I would not have entered.
If i was still stalking THC I would draw a new trendline every day it varied from a few % from its previous close.
Now for Monday I would be looking for 7.25 on THC if I still was interested in it.

Hope this helps,
Muddy


bielyplafon
42 posts
msg #49794
Ignore bielyplafon
2/3/2007 8:46:23 AM

Thank you Muddy,

I remember this post on your blog (I visit it everyday) but forgot about it. I think especially because drawing trendlines is quite subjective matter. How long period you take to draw them? For example I don't understand how you came to 7.30 on 1/29.
If you take on THC 0.93 coefficient than your MP would be at 7.85. That means you would take cca 1 year chart to draw trendlines.

I rememeber TRO posting some article about how to draw trendlines. Well, time to read it again.

Thank you
br
bp




corsino
259 posts
msg #49798
Ignore corsino
2/3/2007 1:06:51 PM

I'm not as precise as Wallman when deciding when or what to buy.Regardless of what filter I'm using,I mostly look at the stochastics graph, because that's my favorite indicator,and select those with smooth graphs with %K that just crossed %D and that has started to point up.Usually I end up with a list of three or four stocks. Next morning after the open I look at which ones are up,by how much they're up,their volume,and the bid/ask differential since I buy at the Market.I don't buy stocks when the bid/ask differential is more than a penny or two,or the price has already gone up more than a few percentage points.



sadelb
12 posts
msg #49799
Ignore sadelb
2/3/2007 6:17:51 PM

Corsino, what site do you use for charts and how do you set them up exactly. Thanks.

Ben


corsino
259 posts
msg #49800
Ignore corsino
2/3/2007 9:10:11 PM

Sadelb
Until recently, I was using Ask Research to look at charts because it was very easy to type in values for all the indicators that I look at, such as linear regression lines , stochastics,MA's, Rsi, Macd,etc...,but unfortunately,the daily chart feature on that site has quit working. So now I have to include additional lines on my filters so SF will display the indicators that I want. Meanwhile, I'm looking for another site that is as easy to use as Ask Research was.



bielyplafon
42 posts
msg #49831
Ignore bielyplafon
2/5/2007 5:51:24 AM

Muddy,
could you please tell me what would be your MP (using trendlines) on the stock such CCUR?

Thank you
bp



Muddy
55 posts
msg #49832
Ignore Muddy
2/5/2007 7:57:44 AM

On CCUR I get a top trend of 1.67 and bottom trend of 1.41 so the MP would be 1.54
Since it's been in a decline I take 1.54 x's .93 which gives a price of 1.4322

You said: "I think especially because drawing trendlines is quite subjective matter. How long period you take to draw them?"

I agree,trendlines are a subjective matter but as long as you trade below/above your line with the existing trend you should be ok if you are in the ballpark with a reasonable MP.

I use a 6 month chart to draw trendlines.I use only candle BODY tops and bottoms,no tails and try to get as many candles involved when drawing trends.
However you do it the key is to be consistent on every chart you draw.



bielyplafon
42 posts
msg #49833
Ignore bielyplafon
2/5/2007 8:51:22 AM

Thank you. I calculated my entry point before your post at 1.483, the top trendline gave me 1.78 and this makes the difference. Bottom line was easy :o))

Thank you
Best regards
bp



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