StockFetcher Forums · General Discussion · "Wait for Green" Support and Resistance<< >>Post Follow-up
alichambers
48 posts
msg #50810
Ignore alichambers
4/2/2007 1:07:48 PM

Hi,

I remember reading a TRO post in 2005 which said the following:

=========
I adapted WAIT FOR GREEN to the 60 minute chart and/or 15 minute chart. If the previous candle is RED, you set a BUY STOP at the previous candle's closing price + .01. You do NOT try to buy at the bottom, you wait for green.

Couple this entry strategy with 60 minute rsi(2) < 1 and you can rake it in, especially on stocks like GOOG and SHLD.

On other thing to point out is to know the support/resistance numbers for the stock you are trading... you don't want to enter right below resistance! So sometimes your entry may be a penny or 2 higher.
=========

I have two questions about this:

1. How do you calculate the support/resistance numbers?

2. How does RSI(2)<1 work and how do I apply it?

Many thanks,
Alex

TheRumpledOne
6,358 posts
msg #50818
Ignore TheRumpledOne
4/2/2007 3:53:25 PM

1. How do you calculate the support/resistance numbers?

You can display them on SF

add column R2
add column R1
add column PP
add column S1
add column S2

2. How does RSI(2)<1 work and how do I apply it?


If RSI(2) < 1 and 60 Minute candle is green, go long.

If RSI(2) > 99 and 60 Minute candle is red, go short.

alichambers
48 posts
msg #50824
Ignore alichambers
modified
4/3/2007 4:09:29 AM

Thanks.

So assuming I am not hitting the support/resistance lines, do you use the close or open of the previous candle as entry points?


TheRumpledOne
6,358 posts
msg #50846
Ignore TheRumpledOne
4/3/2007 4:52:28 PM

Close of previous candle.

tulanch
24 posts
msg #50850
Ignore tulanch
4/4/2007 12:11:49 AM

what I've been doing for support and resistence is to look back in time on the stock - I routinely watch the 60 minute or 5 minute, but review a 5 day, 6 week, and 6 month view where support and resistences become extremely evident(scott trade charts) today (4-3) the nasdaq pre-market movers gapped up to 6 month resistence levels and stayed there all day (very hard to catch these gap ups) - one of my rules is not to buy into a stock that has not broken through this traffic - others stocks I will buy have none of this traffic especially ones that have shown the bollinger band squeeze, volume spike, and break-out, these ones wait for green works very well on and they are rather easy to identifiy - but timming of buying is the key, all can change in 20 minutes - thus delayed quotes can be a hinder. thats my 2 cents :)

alichambers
48 posts
msg #50854
Ignore alichambers
4/4/2007 10:25:50 AM

Thanks all. A great help.

With ref to TRO's last thread about "Close" ... now I'm thinking about it, it would have to be the close and not the open, because as the price transitions from one candle to the next, it will always be around the previous close!!! I obviously wasn't thinking before posting. :)


nikoschopen
2,824 posts
msg #50857
Ignore nikoschopen
modified
4/4/2007 11:10:37 AM

Zap! Wrong thread.

alichambers
48 posts
msg #50859
Ignore alichambers
4/4/2007 1:31:14 PM

Actually TRO - another quick question.

Does 60min RSI refer to the 60mins just passed (ie. ending when the last 60min candle ends), or ongoing into the current 60min session?

AC

bes22
9 posts
msg #50945
Ignore bes22
4/9/2007 12:04:44 PM

When using RSI(2) & wait for the green, I had an interest today SWHC and the RSI2 was at the bottom but instead of one long green bar it showed as a series of rising small green candles, together making the appearance of a long green bar. Would the series of smaller rising green bars be a correct time to enter as long as the RSI2 was at or close to the bottom? TIA Eddie S

StockFetcher Forums · General Discussion · "Wait for Green" Support and Resistance<< >>Post Follow-up

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