StockFetcher Forums · General Discussion · playing reversals on trends<< 1 2 >>Post Follow-up
mystiq
650 posts
msg #71379
Ignore mystiq
2/13/2009 3:42:28 AM

Can anyone answer this question?
When trading reversals, would it be prudent to look for a trend in the opposite direction first? for example;
XYZ trending down from $50 to $30 WOULD be a good candidate to go LONG on reversals whereas
XYZ @ $30 and trending up WOULD NOT be a good candidate to go LONG on reversals.

miketranz
716 posts
msg #71391
Ignore miketranz
2/13/2009 10:27:00 AM

Go long xyz trending up is the right approach.Set your screen up with 3 ma's 10/20/30.Wait until the stock sells off a few days,trades under the (10) day ma.Go long when it trades above the (10) day ma.If the stock trades trades back under it,exit the position.Strong trending stocks will trade above all three of these moving averages,in an upward direction.This basic set up is a momentum swing trade,which in my opinion is the best type of reversal trade because the trend reasserts itself.The rsi(2) reversal is for steeper sell offs.You can check that one out on the forums.Good luck,Mike........

mystiq
650 posts
msg #71444
Ignore mystiq
modified
2/14/2009 2:57:58 AM

thx mike....! (-.-)but...when is the best time to enter a bottom reversal position? During a strong downtrend or strong uptrend? --and the same for a top reversal position...

miketranz
716 posts
msg #71446
Ignore miketranz
2/14/2009 9:16:10 AM

"When is the best time to enter a bottom or top reversal position,in a strong downtrend or on in a strong uptrend"? Is your definition of a strong downtrend or uptrend in the stock your watching or the general market itself? Define what your calling a top and bottom reversal.As far as when to enter a position,I personally enter only if the trend reasserts itself.I use the moving averages as my guide.I key on the (10) day ma crossover from the bottom.I will also enter a position at certain times if the stock trades +.10 above the previous days high.The most important thing is never try to catch any kind of reversal because the stock sells off and you think the price is right.Let it prove itself by moving in the right direction and hitting one of the two triggers or buy zones that I mentioned.The best advice is to use small position size to get the feel of real money on the line.See what works best for you from your own experience.Keep a record of all your trades.Do more of what works,less of what does not.Hope that helps,Mike...........

chetron
2,817 posts
msg #71448
Ignore chetron
modified
2/14/2009 10:14:27 AM

clickable....

UPDATED FOR UPTREND ONLY....


Fetcher[


/* MIKE'S SWINGER SET-UP */

SET{VMA10,MA(10)}
SET{VMA20,MA(20)}
SET{VMA30,MA(30)}
SET{VC,CLOSE}

SET{10XA30,COUNT(VMA10 CROSSED ABOVE VMA30,8)}
SET{VCXA10,COUNT(VC CROSSED ABOVE VMA10,1)}

SET{VCXA20,COUNT(VC CROSSED ABOVE VMA20,1)}
SET{VCXA30,COUNT(VC CROSSED ABOVE VMA30,1)}

DRAW VCXA30 ON PLOT VCXA10
DRAW VCXA20 ON PLOT VCXA10

DRAW VMA20 ON PLOT VMA10
DRAW VMA30 ON PLOT VMA10
DRAW VC ON PLOT VMA10
DRAW VCXA10 ON PLOT 10XA30

MA(10) ABOVE MA(20)
MA(20) ABOVE MA(30)


CLOSE ABOVE 1
VOLUME ABOVE 100000
]



bert123
29 posts
msg #71449
Ignore bert123
2/14/2009 11:37:25 AM

The attached filter puts you in the trend when you use the entry point as the close 4 days ago and you verify that the averages are stacking up correctly. Enter on a close above the 4day ago close in the filter and exit on a close below ma(10). Check out the results from several weeks ago and build other parameters into your selection process to profile the winners and eliminate the losers.

MA(10) is above ma(20) and ma(20) is above ma(30) and close has been decreasing over the last 3 days and close is below ma(10) and close is above 1 and average volume(90) is above 100,000 and volume is above 100,000 and add column close 4 days ago

miketranz
716 posts
msg #71450
Ignore miketranz
2/14/2009 12:16:49 PM

Great filter Chet.If you bring up RIO,heres a stock thats really moving upward.Can you tweek the filter to show upward moving stocks only? Also,add the 3 ma's right into the candlestick chart.That would narrow done our choices to the stocks under accumulation,that are moving up on a 45 degree angle.Thanks,Mike....

chetron
2,817 posts
msg #71454
Ignore chetron
modified
2/14/2009 5:44:29 PM

CLICKABLE....

Fetcher[

/* BERT'S SWINGER SET-UP */

SET{VMA10,MA(10)}
SET{VMA20,MA(20)}
SET{VMA30,MA(30)}
SET{VC,CLOSE}

SET{10XA30,COUNT(VMA10 CROSSED ABOVE VMA30,8)}
SET{VCXA10,COUNT(VC CROSSED ABOVE VMA10,1)}

SET{VCXA20,COUNT(VC CROSSED ABOVE VMA20,1)}
SET{VCXA30,COUNT(VC CROSSED ABOVE VMA30,1)}

SET{VAR1,CLOSE 4 DAY AGO}
SET{VCXAVC4,COUNT(CLOSE CROSSED ABOVE VAR1,1)}
DRAW VCXVC4

DRAW VCXA30 ON PLOT VCXA10
DRAW VCXA20 ON PLOT VCXA10

DRAW VMA20 ON PLOT VMA10
DRAW VMA30 ON PLOT VMA10
DRAW VC ON PLOT VMA10
DRAW VCXA10 ON PLOT 10XA30

close has been decreasing over the last 3 days
VCXAVC4 ABOVE .5
MA(10) is above ma(20)
ma(20) is above ma(30)
close is below ma(10)
close is above 1
average volume(90) is above 100,000
volume is above 100,000
add column close 4 days ago {CLOSE -4}


]



chetron
2,817 posts
msg #71458
Ignore chetron
2/15/2009 8:14:55 AM

THANX FOR ALL THE GREAT INPUT, FOLKS.

mystiq
650 posts
msg #71524
Ignore mystiq
2/19/2009 5:42:04 AM

miketranz 2/14/2009 9:16:10 AM

"When is the best time to enter a bottom or top reversal position,in a strong downtrend or on in a strong uptrend"? Is your definition of a strong downtrend or uptrend in the stock your watching or the general market itself? Define what your calling a top and bottom reversal.As far as when to enter a position,I personally enter only if the trend reasserts itself.I use the moving averages as my guide.I key on the (10) day ma crossover from the bottom.I will also enter a position at certain times if the stock trades +.10 above the previous days high.The most important thing is never try to catch any kind of reversal because the stock sells off and you think the price is right.Let it prove itself by moving in the right direction and hitting one of the two triggers or buy zones that I mentioned.The best advice is to use small position size to get the feel of real money on the line.See what works best for you from your own experience.Keep a record of all your trades.Do more of what works,less of what does not.Hope that helps,Mike...........
--->my definition of a strong uptrend/downtrend refers to the stock i'm watching...and a bottom reversal is a stock falling and then BOUNCING/REVERSING to the upside and vice-versa for a top reversal.

StockFetcher Forums · General Discussion · playing reversals on trends<< 1 2 >>Post Follow-up

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