as214
184 posts
msg #39997
- Ignore as214 |
1/5/2006 8:39:29 PM
No one here has ever advocated using it as a single indicator, not even Riggs. If you look clearly at Riggs' posts (For which I am quite grateful) he talks about using other indicators as well but DMA is his bread and butter. And I have to tell you after how Ive seen it work in conjunction with RSI2 and the 100 % variable linear regression channel, it is pretty powerful. As for filters I am not a big believer in filters as I am a value investor. I firmly believe in not only buying, but trading those stocks that one knows and understands. So what I do is keep large core positions(more than 100k apiece) in my portfolio of 10 stocks. That money stays in those stocks, I dont pull it out for at least a year (15% cap gains rates). On top of that I have an additional 150K block for which I use to trade the above 10 mentioned stocks. If there is a day where not one of these prescribes to Riggs' DMA criteria and/or TRO RSI2 linear regression criteria I simply wait till the next day. Today AEOS was good to me.
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as214
184 posts
msg #39998
- Ignore as214 |
1/5/2006 9:00:30 PM
For example if you look at the 10 day 60min chart on Prophet prior to close yesterday AEOS was at the bottom of linear regression channel AND DMA(28,-14) was more than 3 percent above the current stock price (Thanks Riggs) !! RSI(2) wasnt quite at the bottom and this is where Riggs has helped me. For example, before I met Riggs I would have never entered a position as RSI(2) was not less than 1. I would have blown a golden opportunity. However DMA gave me the assurance to enter as the price was at the bottom linear regression line and DMA was above the price and RSI(2) was fairly low. Thanks Riggs.. PS.. My friend is a trader for Stevie Cohens firm and he occassionally used DMA too!
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TheRumpledOne
6,407 posts
msg #40004
- Ignore TheRumpledOne |
1/6/2006 2:30:41 AM
as214:
I don't know if you have read all of the rsi(2) threads or not.
RSI(2) < 1 was the start.
But another thing to look at is rsi(2) X day low. Where X is whatever number of days you want.
So if RSI(2) is at/near a 22 day low (monthly low) or 66 day low (3 month low) or 250 day low (yearly low), that may give you what you need to enter the trade.
But if you use the WARM ZOOM LENS you'll know when a stock has bottomed or peaked.
MAY ALL YOUR FILLS BE COMPLETE.
p.s. This isn't knocking DMA(28,-14). Just another RSI(2) lesson.
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BFreshour
139 posts
msg #40011
- Ignore BFreshour |
1/6/2006 8:59:42 AM
FYI TRO. I'm in love with the ZOOM LENS!
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riggs
313 posts
msg #40036
- Ignore riggs |
1/7/2006 1:31:57 PM
as214 -
I'm really glad you brought up the point that I use way more than just DMA! Thank you for that. I'm equally glad you ALSO have found success with DMA & rsi(2). Listen, don't worry about the village IDIOTS, just keep trading brother! Many of us here know that DMA DOES what we think it does. It's no accident that our stocks keep flying to the moon. After a bad day earlier in the week, I too have ran off double digit winning trades with DMA as the core of my trading. Now if Verizon Wireless can get thier sh*t together and give me a phone that actually works, I will consider this week a monster one! LOL...
Hey as a side note, I've been looking closely at THERUMPLEDONE'S "Zoom Lens" the last few days, and it looks like something that should be in EVERYONE'S arsonal. While the jury is still out, I do see this as a very, very promising filter. Take a look for yourself....continued success as214!
RIGGS
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