3309 Drysdale Ct
Edwardsville, IL 62025
I've discussed this before many times but I think the concept
went over your head or you many of you didn't pay good attention.
Also it's hard to show without using a video to point out exact
things. Here's a couple quick videos I recorded using Snagit,
honestly I need to make a longer detailed video via Camtasia
because Snagit is limited to 5 min so I constantly run out of
My method proposes instead of selling your full position when
the PMO falls back below 66% (remember I'm the one that came up
with that level in the first place), instead sell only 50% of your
long position and keep the remaining 50% via a stop at the previous
higher low. Many times in nice uptrends you will find that
the PMO will constantly go on a buy and sell signals, getting you
in and out unnecessarily, while this method allows you to keep a
50% trailing position the entire time. Also you have to have
a stop that is outside of the PM because sometimes the PMO goes on
a buy signal and doesn't go back over the 66% level, thus you need
an alternate exit anyway.
Here's a video that t I very quickly threw together, it's
rough and hurried but you get the idea. I made a second one however
it got messed up. I'll make a longer 20 min versions with Camtasia
when I have time
wouldn't surprise me to see some push up early next week with
Great video, makes perfect sense...btw, I know Renko and
PMOBUYALL signals often overlap but do you find that one is more
consistent and/or later signal? Renko has not gone on a sell signal
Renko's can be deceptively good looking because of how the noise
is filtered out but in practice are not always that way, just like
being at the bar at 4 am after way too many, all the girls look
again with any indicator type system to me price action is king,
one should incorporate price action into the indicator systems and
that's where the higher low stuff comes in, I'd use it with the
Renko stuff as well.
Matt - In regards to coupling price action w/ indicator, selling
using the higher-low stops make sense and could work with many
indicators, but what would you recommend for how to buy back
West coast it would be after 1 am. Ex. last week price
kept pushing higher even though we saw bearish divergences across
the board and volume was declining. That being said going short
would have not been a bad idea as the market kept stair stepping up
and up. then finally pulled back a little this week.
Indicators are necessary to know where to drive the boat(
Buoy markers) but you have to always be alert for a change in tide,
winds, storm fronts when you are out in the open water. A
safe watering hole can easily become a trap if you are not paying
attention to the tide, wind speed, barometer, etc... I use
boating because I love to go deep sea fishing and sailing and have
learned some valuable lessons out there.
so basically current situation on that PMO you would have sold
50% of your long position on the PMO below 66% that occurred
yesterday but still keeping 50% with a stop at the last higher low.
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