TheRumpledOne
6,407 posts
msg #39001
- Ignore TheRumpledOne |
11/21/2005 9:49:30 AM
(And my problem is with the HOW and especially when to get out without leaving too much of the potential profit on the table...)
This is a reason WHY most traders fail... they look at what they left instead of focussing on what they took!
Think of trading like burglary... the more you take means the longer you're at the crime scene and your chances of getting caught increase the longer you stay!
In/out quick with a profit... and then look for the next victim.
Also, remembering returning to the scene of a crime (trading the same stock you that you just took profit from) too soon usually results in getting caught (being stuck or taking a loss) too!
MAY ALL YOUR FILLS BE COMPLETE.
|
TheRumpledOne
6,407 posts
msg #39002
- Ignore TheRumpledOne |
11/21/2005 9:51:49 AM
"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..."
I am looking at the chart with the DMA but I know what I am supposed to be seeing!
Are you saying go long when the price crosses above the DMA and go short when the price crosses below? If that's true, then EMA(5) works better.
|
riggs
313 posts
msg #39003
- Ignore riggs |
11/21/2005 1:04:31 PM
THERUMPLEDONE -
No my friend. Go long when DMA IS 5% above price AND when you see a reversal signal at the bottom i.e "Doji", "D-cross","B-Thrusting Line",or exhausted volume spike. The trend is confirmed(add to position) when the ema(3)crosses above DMA, and start taking profits when ema(13)crosses above DMA. Check it out again, you'll see what I mean...
RIGGS.
|
riggs
313 posts
msg #39004
- Ignore riggs |
11/21/2005 1:20:49 PM
Poindexter -
Thank you. And yes I have read "Street Smarts." But IMO, "trading for a living" by Dr. Alexander Elder is much better. This cat in less than 300 pages, goes from beginning investing to advanced, and doesn't miss a beat! Now, you'll want to read it 2-3 times B-4 acting on everything you're tought, but the bottom line is, there aren't too manY books out there better. Maybe as good, but certainly not better.
RIGGS.
|
riggs
313 posts
msg #39005
- Ignore riggs |
11/21/2005 1:51:30 PM
TRO -
Did you plot the DMA @ (14,-28)? I'm not talking about the "displaced EMA(10,-5), I'm talking about the "displaced MA(28,-14)" I can't imagine what you are seeing when you compare the DMA to EMA(5). Here's an example:Pull up the 10-day 60 min. chart and look at (TXI)on 11/16/05. Plot the DMA(28,-14),EMA(3),EMA(13). Do you see by hour 3 & 4 where the DMA is and where it is heading? Also notice in the first hour session on 11/17/05 how the EMA(3)crosses over the big long candle. Notice how it continues until the EMA(13)crosses above DMA? Now do this with all your other favorite stocks, and you'll see nothing but "Green." After you explore with this for a few, tell me what YOU think, and how can I improve on this. Thanks man!
RIGGS.
|
TheRumpledOne
6,407 posts
msg #39007
- Ignore TheRumpledOne |
11/21/2005 4:18:03 PM
"Did you plot the DMA @ (14,-28)? I'm not talking about the "displaced EMA(10,-5), I'm talking about the "displaced MA(28,-14)" I can't imagine what you are seeing when you compare the DMA to EMA(5). Here's an example:Pull up the 10-day 60 min. chart and look at (TXI)on 11/16/05. Plot the DMA(28,-14),EMA(3),EMA(13). Do you see by hour 3 & 4 where the DMA is and where it is heading? Also notice in the first hour session on 11/17/05 how the EMA(3)crosses over the big long candle. Notice how it continues until the EMA(13)crosses above DMA? Now do this with all your other favorite stocks, and you'll see nothing but "Green." After you explore with this for a few, tell me what YOU think, and how can I improve on this. Thanks man! "
Looking at the chart...
I see positive divergence ( price/rsi(2)) at the 1:30 candel. The 2:30 candle shows the price crossing and closing above the rising ema(5) @ $48.01. Looks like ema(5)/rsi(2) beats your DMA/etc... with a quicker entry.
Doesn't matter what indicators you use... name of the game is making money.
|
jacobnbr1
37 posts
msg #39008
- Ignore jacobnbr1 |
11/21/2005 4:39:16 PM
what is dma28,-14??? i come up with a dmi. is this displaced moving average?
thanks
|
riggs
313 posts
msg #39009
- Ignore riggs |
11/21/2005 5:32:03 PM
TRO -
A quicker entry? How do you figure? Do you see that volume spike at 10:30 AM? YOUR entry doesn't happen until 2 hours later, when you see "positive Divergence." Meanwhile, I enter at $47.04 with volume exhaustion. Why? Because of what's above. DMA crossing horizontally! I KNOW price is going up. Your confirmation comes 2 sessions later(2 hours!)But you're right about one thing...it's all about making $Money$ baby! Good luck with RSI(2), but I'll take my filter any session of the day... :)
RIGGS.
|
riggs
313 posts
msg #39010
- Ignore riggs |
11/21/2005 5:38:27 PM
jaco -
Yes. DMA(28,-14)is "Displaced Moving average." My crytal ball into the future!
|
BFreshour
139 posts
msg #39011
- Ignore BFreshour |
11/21/2005 6:46:42 PM
I'm apparently confused how a displaced moving average works... Isn't it 14 bars behind?
|