frtaylor - I think you're right about Matt's system involving
zero crossovers. However, randy's idea about 8 ema crossovers
seems to get you into trades earlier than the zero crossover.
Unfortunately, it also seems to generate a lot of whipsaws when the
histogram is extended (see July 26 to August 5). Any ideas
about how to handle those?
Posted by angelo851 on 28th of Sep 2011 at 11:02 am
Yohimbo, perhaps using another indicator such as the crossover
of -DI over +DI on the ADX 14 as confirming the signal would
have kept use mostly short during that whole downturn between July
26 through August 5. I just quickly visually looked at the chart
for those days and noticed that the -DI on ADX 14 was over the +DI
for that whole time...if I'm not mistaken.
Posted by frtaylor on 28th of Sep 2011 at 08:02 am
I believe randy is only using the 8 ema to exit the trade, not
to enter it. As a way to protect profits, such as the
situation late last week. Is that right randy?
yes , I am using the 8 ema crossover to exit my remaining half
of this short trade. I did exit half of the trade on the spy system
signal. It is working out so far this time.
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frtaylor - I think you're
I sold my SH last friday during the day with ...
Posted by yojimbo on 27th of Sep 2011 at 05:49 pm
frtaylor - I think you're right about Matt's system involving zero crossovers. However, randy's idea about 8 ema crossovers seems to get you into trades earlier than the zero crossover. Unfortunately, it also seems to generate a lot of whipsaws when the histogram is extended (see July 26 to August 5). Any ideas about how to handle those?
Here's a reference to the system: http://breakpointtrades.com/blog/post/174601/
Yohimbo, perhaps using another indicator
Posted by angelo851 on 28th of Sep 2011 at 11:02 am
Yohimbo, perhaps using another indicator such as the crossover of -DI over +DI on the ADX 14 as confirming the signal would have kept use mostly short during that whole downturn between July 26 through August 5. I just quickly visually looked at the chart for those days and noticed that the -DI on ADX 14 was over the +DI for that whole time...if I'm not mistaken.
Thanks, Angelo. Also, RSI(14) stayed below
Posted by yojimbo on 28th of Sep 2011 at 01:17 pm
Thanks, Angelo. Also, RSI(14) stayed below 50 for that whole time.
I believe randy is only
Posted by frtaylor on 28th of Sep 2011 at 08:02 am
I believe randy is only using the 8 ema to exit the trade, not to enter it. As a way to protect profits, such as the situation late last week. Is that right randy?
yes , I am using
Posted by randy on 28th of Sep 2011 at 03:48 pm
yes , I am using the 8 ema crossover to exit my remaining half of this short trade. I did exit half of the trade on the spy system signal. It is working out so far this time.