Thanks Matt, I'm looking at it now. Using
freestockcharts.com, there are two ROC indicators available, one
being a percent, which I gather is the right one. The ROC on
my chart says it's at -0.7, so on a sell already. But because
it's a monthly chart you have to wait until Jan 1st to get the
final signal?
yes because indexes can have wild swings in a month, or you note
it as bearish since it's still early in Dec but if it goes back
positive in the month you switch. see my last post about Stochastic
and monthly indicators, most people cannot psychologically trade
monthly charts IMO.
I think it's best either used for a long term 401K plan that can
rarely be adjusted, or you use it to denote the long term trend,
then use smaller time frame indicators and systems to trade the
long term trend. For example if the monthly chart is on a buy
signal, then look to buy major pullbacks with small time frame
charts (daily/60 min) since the major trend is up, and vice versa
if the monthly chart is on a sell, then use the smaller time frame
chats (daily and 60 min) to sell rallies since the long term trend
is down
Thanks Matt, I'm looking at
Posted by frtaylor on 4th of Dec 2011 at 11:29 am
Thanks Matt, I'm looking at it now. Using freestockcharts.com, there are two ROC indicators available, one being a percent, which I gather is the right one. The ROC on my chart says it's at -0.7, so on a sell already. But because it's a monthly chart you have to wait until Jan 1st to get the final signal?
yes because indexes can have
Posted by matt on 4th of Dec 2011 at 04:41 pm
yes because indexes can have wild swings in a month, or you note it as bearish since it's still early in Dec but if it goes back positive in the month you switch. see my last post about Stochastic and monthly indicators, most people cannot psychologically trade monthly charts IMO.
I think it's best either used for a long term 401K plan that can rarely be adjusted, or you use it to denote the long term trend, then use smaller time frame indicators and systems to trade the long term trend. For example if the monthly chart is on a buy signal, then look to buy major pullbacks with small time frame charts (daily/60 min) since the major trend is up, and vice versa if the monthly chart is on a sell, then use the smaller time frame chats (daily and 60 min) to sell rallies since the long term trend is down
Great comments, thank you Matt.
Posted by frtaylor on 4th of Dec 2011 at 09:21 pm
Great comments, thank you Matt.