Flier6, Interesting. You've taken the method a step further by incorporating stops and exits. My initial plan was to let the entry points also act as stops, since you would be, in effect, bracketing the market. If you are able to post a chart with the computerized points that you've programmed, I'd be very interested to see it. If you have time, of course. Also, I had never tested the method on a intraday basis. I'll have to look at some charts with different timeframes and see how it looks. Hapy trading! Lizard
Alert to TriPack - there is an interesting "SP trend following System" trading method currently being discussed on the Home page. Also, my personal thanks for your efforts. One of the methods presented examined in a different light an idea that I have been working on. Thanks again.
Just a reminder, if you have a method or system that you'd like to share, or if you have seen a method or system here on ET or elsewhere, post a link here or PM me so it can get added to the GEMS: Methods and Systems thread. Thanks, http://www.elitetrader.com/vb/showthread.php?s=&threadid=9722
I like this, so I will contribute. take a 14 period stochastic. take the stochastic of rsi(14). watch for divergence on the stoc of rsi from the plain stoc. Enter short or long on any accompanying candle signal. Use 4 point stop Close at end of day.
How do you take a stochastic of rsi since stochastic requires the high low and close of each bar? Do you mean rsi of stochastic?
No, stochastic of rsi. In EL....Stochastic(rsi(h,14)),(rsi(l,14)),(rsi(c,14)),14,2,3,1...... Connie Brown teaches something like this in her book...she uses something called a composite indicator. She didn't give the formula for it, but the Stoc of rsi acts very similar by way of being a confirmation of rsi.
Personally my method is to go in and lose money every day but for a fully explained successful method the only trading book I have read that gives this instead of vague trading rules is The Logical Trader - Mark Fisher. www.mfcc.com