donnelt
11 posts
msg #79355
- Ignore donnelt
modified |
9/16/2009 7:00:10 AM
Cello.. the main indicators I use are in the chart. I also use fib/volume for resistance support, eg:
http://www.stockta.com/cgi-bin/analysis.pl?symb=C&num1=9&cobrand=&mode=stock
However, using Connors/M4M RSI(2) was causing problems when I timed the entry or exit badly on a large near-term, near-money call trade when the trend was down. On a down-trend, the calls started to run away from me, but all the short-term indicators were giving periodic (hourly) cause for hope when the tide was going out.
I used MACD and RSI(14) to try and spot the turning point, but they seemed to have too much lag for day-trading. I noticed MFI(14) seemed to have the right balance of immediacy and trend. It did not lag as much as the others.
Clearly, its's good to know when money starts to flow out of a stock (as a trend). It increases the risk of large intra-day or over-night call option purchases, but also helps you decide whether you get out now with a small loss or ride the calls further.
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