TheRumpledOne
6,411 posts
msg #45011
- Ignore TheRumpledOne |
6/15/2006 8:32:49 PM
ashraf999
- Ignore ashraf999
- Report offensive post 6/15/2006 3:44:58 AM
Look at this one.
Despite RSI<1, the stock price kept going lower. RSI(2) is now at 0.03!
http://stockcharts.com/h-sc/ui?s=tmy&p=D&yr=0&mn=1&dy=0&id=p04409184746
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One can always find an example of when a system doesn't work.
But the "trick" is to be able to find the examples that do in the heat of battle.
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ashraf999
33 posts
msg #45050
- Ignore ashraf999 |
6/17/2006 6:57:32 AM
TheRumpledOne,
So what is the criteria of those stocks that succeed in the "heat of the battle"?. Can you be more specific?
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ashraf999
33 posts
msg #45048
- Ignore ashraf999
modified |
6/17/2006 7:00:11 AM
I did not trash (RSI(2) < 1) at all. I am just thinking that it needs to be modefied to reflect only specific stocks - if that is the intention of TheRumpledOne. This filter as I understood it does not exclude penny stocks or bad performance stocks.
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ashraf999
33 posts
msg #45049
- Ignore ashraf999
modified |
6/17/2006 7:00:57 AM
.
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TheRumpledOne
6,411 posts
msg #45052
- Ignore TheRumpledOne |
6/17/2006 11:02:12 AM
ashraf999
TheRumpledOne,
So what is the criteria of those stocks that succeed in the "heat of the battle"?. Can you be more specific?
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With all due respect, I think you are confusing stock SELECTION with stock TRADING.
Filters SELECT stocks for a trader to TRADE.
If you know how to trade, you can use a dart to select your next trade and make money.
Of course, that begs the question: Why use filters?
One uses filters to speed up the process of selecting stocks that exhibit certain chart characteristics and/or fundamentals. Why scan charts and tables when a computer can do it (better and faster)?
Stocks where RSI(2) < 1 are "bottoming" on their charts. That does NOT mean that the price can NOT continue south. It just means, on average, there's a good chance of the stock price rising in the near future.
When you look at "big boy" stocks (stocks the institutions trade), you will see over the course of a year that these stocks recover from RSI(2) < 1.
But stocks do NOT succeed, traders do!
If you are a good trader, then all you have to do is trade AAPL. AAPL has the daily range and volume that will allow you to make a daily profit. If it gaps up, you go short. If it gaps down, you go long. AAPL usually fills the gap!
GOOG, HANS, and IRSG are the top 3 on my list of daily traders. Just 100 shares of any of those can make you $300 or more per day, everyday. That's $75,000 a year gross profit, if you trade everyday.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT.
HTH.
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TheRumpledOne
6,411 posts
msg #45053
- Ignore TheRumpledOne
modified |
6/17/2006 11:21:58 AM
Rather than take my word for it, I wrote you a filter that displays the gap statistics for AAPL.
column gappedup100 - # OF TIMES AAPL GAPPED UP OVER THE LAST 100 DAYS
column gappeddn100 - # OF TIMES AAPL GAPPED DOWN OVER THE LAST 100 DAYS
column gapfilled - # OF TIMES AAPL FILLED THE GAP
column gapup100f - # OF TIMES AAPL FILLED THE GAP UP
column gapdn100f - # OF TIMES AAPL FILLED THE GAP DOWN
The odds are in your favor if you "fade the gap".
Remember, this just counts the fills... You can even make money if the gap doesn't fill all the way!
MAY ALL YOUR (GAP) FILLS BE COMPLETE...LOL!!
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ashraf999
33 posts
msg #45076
- Ignore ashraf999 |
6/18/2006 3:23:32 AM
Thanks for the clarification.
Maybe I should have rephrased my question when asking about the stocks that "succeed" in "the heat of the battle". I certainly understand that it is the traders who make it succeed or fail. But my question was focusing on the characteristics of those stocks that attract those "successful" traders in the first place.
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TheRumpledOne
6,411 posts
msg #45079
- Ignore TheRumpledOne |
6/18/2006 11:12:15 AM
ashraf999
Thanks for the clarification.
Maybe I should have rephrased my question when asking about the stocks that "succeed" in "the heat of the battle". I certainly understand that it is the traders who make it succeed or fail. But my question was focusing on the characteristics of those stocks that attract those "successful" traders in the first place.
...............................................................................
In a single word: VOLUME!
But here we have the chicken and egg... you don't have volume without traders and you don't have traders witout volume.
There are FUNDAMENTAL reasons that attract traders.
News attracts traders.
Consistancy attracts traders.
But if you are talking about daytraders and short swing traders, it's average daily volume and trading range.
HTH.
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alf44
2,025 posts
msg #45097
- Ignore alf44 |
6/18/2006 9:12:53 PM
...the "attention given" and the "importance placed" on RSI(2) in these Forums...
...is nothing short of LAUGHABLE !!! imo
Regards,
alf44
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TheRumpledOne
6,411 posts
msg #45098
- Ignore TheRumpledOne |
6/18/2006 9:45:19 PM
alf44
...the "attention given" and the "importance placed" on RSI(2) in these Forums...
...is nothing short of LAUGHABLE !!! imo
Regards,
alf44
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Care to explain exactly what you find laughable?
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