SAFeTRADE
656 posts
msg #138845
- Ignore SAFeTRADE
modified |
10/24/2017 9:36:56 PM
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ron22
255 posts
msg #138846
- Ignore ron22 |
10/24/2017 11:49:36 PM
After your filter gives an EOD buy signal do you buy at the next open or wait for GREEN?
Do you think this filter would work with different stocks or etf's? If not, what is special about SPY,QQQ,XIV,DIA, and VXX?
Thank you for answering my questions. I am still learning.
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SAFeTRADE
656 posts
msg #138848
- Ignore SAFeTRADE |
10/25/2017 7:11:52 AM
I have not traded this filter. I used the indexes and VXX and XIV just to test the filter. Overbought
and oversold mean nothing in this market, especially overbought. So I am looking more at range
compression and expansion. The markets go from one to the other. From compression to
expansion, expansion meaning either up or down.
The Chop oscillator also helps me with determining that. Readings above 80 consolidation and
readings below 61 expansion either up or down. If the numbers are right consolidation or compression
should happen above 80 with expansion below 61, up or down.
So with Chop readings around 80 give or take depending on the settings and the index in compression
or contraction we should be able to expect expansion again. Expansion up or down. In this
market usually up. The RSI(2) and RSI(3) along with Bollinger %B(4,2.0) in my mind give the earliest
indication of expansion. Up expansion indicated with readings above 70 on RSI(2) and RSI(3) and
Bollinger %B(4,2.0) above .74. Down expansion with readings below 30 on RSI(2) and RSI(3) and
readings below .5 on Bollinger %B(8,2.0)
As TRO used to say I am thinking on paper by writing these out. I have noticed that GLD, SLV, TLT
even XIV do not behave the same in most filters as equities do. They seem to start earlier as in
more from the bottom. So if an entry is not made quicker on these you miss the move. Maybe
because there are hardly and dips and the ones we have or not as deep.
Anyway my two cents.
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ron22
255 posts
msg #138849
- Ignore ron22 |
10/25/2017 7:44:42 AM
Thank you very much for the detailed explanation. I will paper trade this filter for 2-3 months and see how it does. Thanks again.
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