ZXenigma
7 posts
msg #65856
- Ignore ZXenigma |
8/5/2008 7:03:55 PM
So I was wondering, does this scan work in all markets? Or does it only work on markets that are already bottoming, and you're just trying to pinpoint them? or does it work as a general rule in bear markets? I'm confused. Any clarification would be much appreciated. Thanks!
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WALLSTREETGENIUS
983 posts
msg #65871
- Ignore WALLSTREETGENIUS
modified |
8/6/2008 8:54:22 AM
ZX -
You should know that nothing ever good happens when the market is down, unless a stock is reporting earnings or something. But this indicator combination really is designed to find a stocks bottom. In my extensive research I found that when the two diverge from one another and the first day is a market down day, but the second consecutive divergement usually is on an up day. Coinsidance?...maybe. High profitability?...ALWAYS!
Now here's the win-win situation. Many times you'll see a stock never move up even when you have a 2-day divergement. But look at what happens when Williams(2) FALLS on the 3rd day. Well think about it for a moment. What is that pattern? POSITIVE DIVERGENCE! Do you see it? So if you miss on that 2nd day, you KNOW what's next, but more importantly, you know why. I've made some unbelievably profitable filters here, but nothing like this one! And to think it happened just to show everyone how obsolete RSI(2) is....is really quite remarkable if you think about it....
- WALLSTREETGENIUS -
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miketranz
961 posts
msg #65876
- Ignore miketranz |
8/6/2008 9:22:20 AM
Riggs,when are you entering??? On open,on close,intra day,as soon it turns green??? Where are you placing your stop??? Details please and thank you...
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drew9
171 posts
msg #65878
- Ignore drew9 |
8/6/2008 11:25:47 AM
Hi Riggs,
I am also interested as to how you have effectively traded this scenario. If you have a long candidate, what to you validate before pulling the trigger? Do you look for the market to be up? If so, what time do you typically enter the trades? Do you give it say 15-20 minutes to shake out to determine market and stock direction or just go on initial green? Looking at this based on what I have seen, the opposite looks good as well for short candidates.
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WALLSTREETGENIUS
983 posts
msg #65882
- Ignore WALLSTREETGENIUS |
8/6/2008 1:15:15 PM
Mike,
When you're playing "bottoms", you cant use "stops." If you do, then commisions will eat you alive. Most of the trades I make usually end up falling another day anyway. I do this so the market maker will give me the price "I" want, not the price HE wants to give me, AND make me wait for it. I never make that mistake anymore. How many times have you found an absolute bottom, and have your fill way above the price you wanted on a runaway session? Too many if you ask me! You don't think a MM knows when a stock has bottomed? Buddy, it's his JOB to know! So taking a hit for a couple of days should never be a big deal. Taking a gap down is a different story, but if you follow my set-ups, there never will be any. Look for yourself. When the 2 diverge, you'll never see one! So why stop yourself out AND give away free $money$? That's just bad business IMO. Now I don't suggest NEW traders take this kind of aggressive approach, but you asked what "I" do right?
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WALLSTREETGENIUS
983 posts
msg #65884
- Ignore WALLSTREETGENIUS |
8/6/2008 1:56:26 PM
Drew9 -
I look for stocks with this set-up that have had it in the recent past, and look for what they do when they diverge. See, stocks have a life of their own sometimes, and will mimmick themselves over and over.
I used (GOOG) in an example yesterday for something else, but look what happens everytime WILL & RSI divergege on a six month chart.
2/26/08:
The market was an "up day", and GOOG came off a gap (love those). If you bought the close @ $462.00, and sold it when WILL(2) fell below it's upeer reference line (-25) on 2/28/08 @ $474.00
3/28/08:
The S&P had a "down day", but WILL & RSI diverged, so you KNOW tomorrow would be an "up!" So if you entered at the close on 3/28/08 @ $447.00, you didn't have to close until 4/2/08 when you saw that "shooting star", and Billy(2) never reached the upper reference line. But your close was way up @ $468.00!
4/15/08:
Again, the S&P is "up", and GOOG is about to reports earnings in a couple of days. Remember what I tought you guys about stocks about to report and diverge? Well, your close was @ $449.00 (enter) and the word on the street was that GOOG was going to be well above expected. But who knew it would be .32 better? Anyway, the divergement, told you what was going to happen BEFORE it happened! Result?...a $539.00 close on the day of the gap 4/18/08!!!
Then check...
5/22/08, 6/3/08, 6/23/08, 6/27/08, 7/15/08, 7/21/08, and 8/1/08.
EVERY SINGLE TIME LIKE CLOCKWORK! So this is what you want to look for...stocks that have a habit of repeating themselves "over and over."
- WALLSTREETGENIUS -
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ZXenigma
7 posts
msg #65894
- Ignore ZXenigma |
8/6/2008 3:53:37 PM
Thanks, I appreciate the help!
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alf44
2,025 posts
msg #65898
- Ignore alf44
modified |
8/6/2008 4:27:41 PM
...the name of this thread looks like something from ...
...Proctology.com !!!
LOL
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drew9
171 posts
msg #65912
- Ignore drew9 |
8/6/2008 10:13:45 PM
Hi Riggs,
So is it typical for you to jump in on these near the end of day when you spot the divergence? SF is delayed 15 minutes so what is the typical time you make your entries? (Another reason we need real time stats from SF!) What is your profit stop or average number of days held? I can see from the stats that the W/L Ratio is fairly high on this but I am just trying to eliminate as many false moves as possible. I also think the short possibilities here are just as good as any short filter I have seen. Do you short these as well?
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killerdude
32 posts
msg #65913
- Ignore killerdude |
8/6/2008 10:32:59 PM
Just a few questions WSG
This is a dynamite filter!! And thanks a whole lot for sharing!!
I carry the first 3-4 filters, in positions 1 - 4,,,carry them 4 days.and drop them off on the 4th day!
is there anyway that you narrow done the selection of stocks..money management??
By the way, your one hr entry point works great!! I use this with a MACD SLOW/FAST(6,16,4) !
When it crosses above zero..it just explodes!
Thanks in advance
DOOD
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