one knows the night before what the expectation for the coming day is, it is not done after the fact. based on the condition of the ROC (and pivot#), certain price movement is anticipated, but sure . . . price action has to confirm it, not going about this blind if you will look back at the Dow example posted on pages 2 & 3, it really answers most of your questions, and it is quite specific. it is describing a "sell short" day on the recent Naz example, the market is displaying a very nice rhythm. starting on 01/26/05: 2 days down on the ROC, look to buy (this was also a short-term dvg), exit the following day; 2 days up on the ROC, look to sell, exit the following day; 2 days down on the ROC, look to buy, exit the following day; 2 days up on the ROC, look to sell (this was also a short-term dvg), exit the following day; 3 days down on the ROC, look to buy . . . now this rhythm doesn't always exist, but by watching the daily pivot #, one can recognize when it does and take advantage of it this is a very simple concept, don't make it complex . . .
at long last . . . a stock chart if i'm posting an equity chart, it must be about the end of the road . . . <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=690448>
thinskis, "Following day" follows which day? If todays close indicates that tomorrow is a BUY day. Does one buy the close and look for confirmation on the "following" day? If price action confirms, trade is held and exited before the close? Or one buys next morning open (or lows) and looks to hold overnight into following day? Thank You.
Two years to the day since the last post on this thread. Lots of great info here. Thought I would pop it to the top to see if anyone out there who uses ROC(2) successfully has anything further to add. tia waterwisp