Posted by frtaylor on 25th of Feb 2011 at 03:11 pm
Matt, I would like to take a shot at trading the SPX. I'm
waiting for the 60 sto to cross below 80 for my sell signal. That
is the Gospel according to Matthew, right?? Also, if it's
above 80 at the close, would that also be a good point at which to
short, since it almost never lasts more than a day up at those
levels?
Hmmm... JMHO but I would wait for the trigger. Also you could
backtest this strategy or paper trade it at least. In the time slow
stoc 60,3 has remained above 80, $SPX has run from 1308 to 1320.
Who says it can't stay overbought? How would you be stopped out if
you don't have a trigger? Just thoughts...
I just remember that a signal can stay extended overbought or
oversold usually as long as it wants and usually longer than
my patience or endurance, hehe.
Even if the line breaks slightly with today's tight range it can
be a fake out ....
frtaylor----Don't put words in Matt's mouth and remember trade
what the market does NOT what you think it should do...nothing is
gospel when it comes to trading.
I like the 80 level break on the 5 min 60 sto as a decent signal
AS ONE AMONG MANY. No one signal is infallible so use your noggin
and look for other confirming triggers. And best of luck.
5 min SPX chart and 60 stochastics
Posted by frtaylor on 25th of Feb 2011 at 03:11 pm
Matt, I would like to take a shot at trading the SPX. I'm waiting for the 60 sto to cross below 80 for my sell signal. That is the Gospel according to Matthew, right?? Also, if it's above 80 at the close, would that also be a good point at which to short, since it almost never lasts more than a day up at those levels?
Hmmm... JMHO but I would
Posted by Vida on 25th of Feb 2011 at 03:21 pm
Hmmm... JMHO but I would wait for the trigger. Also you could backtest this strategy or paper trade it at least. In the time slow stoc 60,3 has remained above 80, $SPX has run from 1308 to 1320. Who says it can't stay overbought? How would you be stopped out if you don't have a trigger? Just thoughts...
that'd definitely be the safe
Posted by frtaylor on 25th of Feb 2011 at 03:24 pm
that'd definitely be the safe thing, which is why I posed it as a question. waiting for Matt to chime in.
no trigger no trade, baaaaby
Posted by perthx on 25th of Feb 2011 at 03:27 pm
I just remember that a signal can stay extended overbought or oversold usually as long as it wants and usually longer than my patience or endurance, hehe.
Even if the line breaks slightly with today's tight range it can be a fake out ....
fake out break 60 sto 5min
Posted by perthx on 25th of Feb 2011 at 04:10 pm
well, 1322-1325 may hold this on Monday or maybe it just starts straight down? kinda looks like a small bull flag on the 1 min chart....
have a great weekend folks.
Adv/Decl is very strong...not a time to short, prob see a race to the top in the EOD
Posted by klatuu on 25th of Feb 2011 at 03:15 pm
Whoaaaa, hang on a sec
Posted by perthx on 25th of Feb 2011 at 03:13 pm
frtaylor----Don't put words in Matt's mouth and remember trade what the market does NOT what you think it should do...nothing is gospel when it comes to trading.
I like the 80 level break on the 5 min 60 sto as a decent signal AS ONE AMONG MANY. No one signal is infallible so use your noggin and look for other confirming triggers. And best of luck.
I'm also looking at the
Posted by frtaylor on 25th of Feb 2011 at 03:17 pm
I'm also looking at the MACD, which is not making new highs.
Ouch! Did I say something
Posted by frtaylor on 25th of Feb 2011 at 03:16 pm
Ouch! Did I say something wrong? If you'd be more specific that'd help me to rectify whatever faux pax I may have made!
not really anything 'wrong'
Posted by perthx on 25th of Feb 2011 at 03:18 pm
just that nothing is as cut and dry as you suggested. though the basic premise is sound.