What is a good Buy trigger for a Position trader?

    Posted by zaru on 21st of Aug 2008 at 02:24 am

    Hi guys/gals,

    Sorry for the stupid questions, but I have another one here.  This one wraps me up all the time. 

    And if this isn't something appropriate for the blog, sorry about that.

    What is the single best/reliable trigger (or combo of triggers) to buy on a daily chart for Position traders?

    As a Math (number theory) and Physics (Relativity) major, I have a huge problem with any variations greater than 0.00000000000000000000000.  Matt, I bet you can relate as you're an engineer, though you engineers screw up pure math by having to factor in the cost/weight issues!  ha ha ha!  PURE MATH RULES!

    On to my triggers - pick 1, or 2, or a combo of 1 or 2 please:

    1 - MACD cross on the Daily chart

    2 - Higher Pivot Low on the Daily chart

    3 - Resistance Trend Line crosses on the Daily chart

    4 - Slow Stoch on the Weekly chart

    5 - Price crossing above the 20 day moving average (simple, not exp) - variation: 9 EMA, or 20 EMA, or X EMA

    6 - Full moons, equinoxes, lonely screams in the night, comets, and black cats crossing under ladders - weekly or daily (either)

    I am stuck, as in STUCK,

    - Zaru

    indicators

    Posted by jcomptonod on 21st of Aug 2008 at 09:03 am

    Hi Zaru,

    Chart reading is kind of an art that you develop over time.  Relying on one indicator is usually futile.  (If I was following one which I don't it would be the MACD and RSI). What you are  really trying to do is get the whole picture of the price movement, for the time frame you are interested in.  As a position trader you should be trading with the larger trends (except like now when you may be near major inflection or reversal points). So, it's as much about establishing the primary, secondary and short term trend as anything else.  Trend lines help you there. Looking for patterns such as ascending triangles etc. help you gauge where you are at in terms of price trends and the likelihood of the next move.  The indicators help you refine, confirm and deny the likelihood of those moves.  Hope this made sense.

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