profitseers RAMS system

Discussion in 'Technical Analysis' started by profitseer, Dec 24, 2002.

  1. wherin
    R stands for Resistance
    A stands for Average
    M stands for Moving
    S Stands for Support

    I use this for scalping, but maybe you can figure out a way to use it for more meaningful moves if you are still searching for meaning.

    you need software which draws horizintal lines which continue on presumably to infinity

    1. Pick your favorite chart (mine is 1 min)
    2. Pick for favorite ma (mine is 30 sma)
    3. Draw a horizontal line everytime price intersects ma

    peg each line as support and resistance

    after a while you get a few weak lines, and large belts

    Rules: only trade long when prices are above ma, this is clearcut and written in stone

    when ma breaks above resistance it's a clear cut buy signal*
    take profits when prices hit a thick zone**
    look for areas of clear sailing
    stay out of the belts if possible

    ma crossovers are subject to whipsaw, this keeps you out. Even though prices or a fast ma may break above, do not go long until ma breaks above resistance.

    opposite for short

    *Can often get filled at the bid or on a pullback
    **If prices and ma break through the belt, you can re enter long again on the other side

    Merry Christmas
  2. Thanks for the post... can you post a screen shot of a chart with your lines drawn on it as an example?
  3. volvo264



    If that system is intended to be a Christmas gift to members, then thanks very much. Its a nice, timely present.

    Merry Christmas to you profitseer
  4. this system is and how consistently profitable. Just curious.

    It's a simple system from what I see and so I already like it. :)
  5. profitseer, yes a chart would be nice. and please take this as a compliment, this is the first idea with some substance that i've seen from you.
  6. There's no point in posting a chart. It would have to be recreated. By the end of the day it's usually a net of lines all over the place. Anyone can recreate it. You just draw a horizontal line everytime prices intersect ma.
  7. It's not really a system, it's a TA setup.

    Today was an unusally clear and easy day. Holidays and low volume are usually very easy for me because moves are not challenged very vigorously.

    If you want to check it out, 12/27, 1 min chrt, 30 sma

    Missed the opening because I was not there.

    Trade 1. short 883 cover 882
    Ttrade 2 short 879.29 cover 879.00
    trade3 short 878.00 cover at 876.50

    When trading in uncharted territory, you the most sensible profit would be when prices tag ma I suppose, but I never wait that long.

    trade 3 looked good in the p/l box so I rang the register at 876.50, There was plenty more, and it's still going on as we speak right now.

    I'm just a scalper. 1 full point is a good days work for me.

    This is just a variation of the ma crossover. Works on the principal "If you rise without resistance, you'll fall without support."

    The market is always in one of three stages.
    Green light=you know you want to get long at the best price
    Red light=you want to get short at best price
    Yellow light=no matter how it looks, nothing can make you risk your hard earned. mkt is yellow about 95% of the time.

    entries are very precarious, you never know what is going to happen, most of the time I take whatever I can get and run. But usually 2 or 3 times a week you are in on a big move.

    I have no interest in the big moves, but maybe someone can use this for trades that setup over multiple days.

    stops? ah, I don't want to talk about it. If anyone is interested they can recreate the charts and see how it goes.
  8. have a substantial weekend
  9. LOL :D

    You're at least one up on me profitseer. You know I love the idea. Runningbear had an excellent idea similar in ways to this. It was based on the "Line in the Sand" model.

    T'kay, there's a book worth reading. It's an old book. But when my West Point roommate and I were not getting along, I read it, and it wasn't too long before we became great friends and still stay in touch.

    "How to Win Friends and Influence People" by Dale Carnegie.
  10. Hi profitseer...if you would give the "time" the trades took place, it would help. Is this where you took your first trade?
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    #10     Dec 29, 2002