As you know, the GDX Renko daily chart flipped over to a buy
signal on Tues Jan 3rd at the close.
However keep an eye on the 60 min chart and the 14% K, it's
getting closer now to the oversold level. However also watch
the 5 length RSI, I have not yet done the statistics, but it looks
interesting and I may investigate this over the
Stochastic.
Remember, the buy signal occurs when Stochastic falls below 20%
and then crosses back above 20%. The signal does not occur
simply by %K falling below 20%, it has to cross back above 20%.
If you want to use the RSI instead, it would work the same way;
it would need to fall below 30% and then cross back above 30%
Is there a chance that Stochastic will get close to oversold but
won't make it and will miss the signal, yes. However you can
still get GDX at a much better price than the daily chart which was
at 53.77 on Tuesday's close even if you had bought GDX when it only
got close.
Thanks for the further explanation on the cross back up on the
14 stochastic for a long, what are you using as a sell signal after
we are in the trade?
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GDX Renko system, and 60 min chart comments
Posted by matt on 5th of Jan 2012 at 10:15 am
As you know, the GDX Renko daily chart flipped over to a buy signal on Tues Jan 3rd at the close.
However keep an eye on the 60 min chart and the 14% K, it's getting closer now to the oversold level. However also watch the 5 length RSI, I have not yet done the statistics, but it looks interesting and I may investigate this over the Stochastic.
Remember, the buy signal occurs when Stochastic falls below 20% and then crosses back above 20%. The signal does not occur simply by %K falling below 20%, it has to cross back above 20%.
If you want to use the RSI instead, it would work the same way; it would need to fall below 30% and then cross back above 30%
Is there a chance that Stochastic will get close to oversold but won't make it and will miss the signal, yes. However you can still get GDX at a much better price than the daily chart which was at 53.77 on Tuesday's close even if you had bought GDX when it only got close.
Confused by the table
Posted by jlevinthal on 5th of Jan 2012 at 11:40 am
The 8/30/2011 Renko buy at at a price of 62.82 has a 9/13/2011 60 min buy also at a price of 62.82. How come the %G/L is different
jlevinthal - I believe the
Posted by yojimbo on 5th of Jan 2012 at 11:48 am
jlevinthal - I believe the %G/L for each 62.82 buy is shown on the next line down: 0.3% (sold at 62.99) and 1.7% (sold at 63.89).
I thought both systems sell at the same time?
Posted by jlevinthal on 5th of Jan 2012 at 12:45 pm
I think the 60-minute table
Posted by yojimbo on 5th of Jan 2012 at 12:49 pm
I think the 60-minute table reflects using STO to time buys and sells (and shorts and covering shorts).
Title: Closing Out The Trade Matt, Thanks
Posted by cclammers on 5th of Jan 2012 at 10:32 am
Matt,
Thanks for the further explanation on the cross back up on the 14 stochastic for a long, what are you using as a sell signal after we are in the trade?