Very simple trend-following set-up

Discussion in 'Strategy Building' started by Zestilio, Nov 9, 2015.

  1. Handle123

    Handle123

    I don't know if it is am getting older or losing patience, but in my mind of waiting for all the EMAs to line up right, I be in earlier for medium term trade and if I want to be in longer term trade I would use monthly and enter weekly. I been working on last three years of trying to find extreme highs/lows in stocks and ETFs so I have a chart of weekly and using Price and Volume Trend (PVT) is a variation of On Balance Volume, used to determine the strength of trends and warn of reversals. I like it as it gives few divergence signals on weekly as I want to be able to stay in longer, Then use Daily charts for enter. Many ways to enter, but I am using PVT the notify me when to stop taking trades and only look for different directional signals. I prefer to look for John Hill's "Thrust Bar" to define daily trend beyond 18 ema, and just using the 18ema for entry. Once I get to breakeven stop, I don't trail it. I will look for "thrust bar" pattern going other way then next day put protective stop little further than that, often times price won't down more than this saving me from getting out. I think best way to trade in people's beginnings are first doing long term trading, getting good at chart reading and speed. Day trading would be last thing to learn and work at as it takes great deal more time to get good.
     
    #21     Feb 19, 2016
  2. Mysteron

    Mysteron

    So on the basis of the recent divergence between price and OVT for RRC would you taken that as in indication that price would rise? Clearly that scenario didn't follow through as the PVT has since dropped and the divergence is no longer present

    RRC has an earnings release on 25th Feb, so as price is going down, dropping out of the previous five day range, it suggests that current holders are getting out in anticipation of bad news. So it seems more likely than not that price will continue to fall at least untill the 25th.

    I'm not trading this incidently, just curious to see what unfolds.

    RRC2.png
     
    #22     Feb 20, 2016
  3. Handle123

    Handle123

    What you marked was not divergence. For a Bullish divergence, need lower lows comparing it to another pivot low and higher indicator reading. On your chart you clearly having lower price and indicator is dropping.
     
    #23     Feb 20, 2016
  4. Mysteron

    Mysteron

    #24     Feb 20, 2016
  5. Handle123

    Handle123

    huh? Moral of the story, don't use indicators when unsure how to use them? Of course I use indicators sometimes differently that others too, always good to ask. Even when people tell me what they are doing, I often times still can't understand what they are doing, LOL.
     
    #25     Feb 20, 2016
  6. Mysteron

    Mysteron

    I don't use indicators at all, whatsoever, no need to, common sense says not to do so. If that offends you then that it an issue for you to deal with.
     
    Last edited: Feb 20, 2016
    #26     Feb 20, 2016
  7. RobRoss

    RobRoss

    I don't think it would good for new traders. You haven't mentioned any exit criteria. Besides, very poor money management system!
     
    #27     Feb 18, 2017
  8. eganon69

    eganon69

    Has anyone noticed this thread started in 11-15 and the OP never responded to any of the comments given in the thread? Just sayin,...
     
    #28     Feb 18, 2017
  9. Handle123

    Handle123

    LOL, almost nothing offends me. Question, that chart you posted on RRC, it had indicators on it and also it looks much different than this chart from www.barchart.com, am thinking we will have rebound up as Quad bottom and volume coming it.

    upload_2017-2-18_8-1-57.png
     
    #29     Feb 18, 2017
  10. %%
    Yes; you are correct,IM. I like the charts where a 200 dma-- they auto appear on hourly candle charts as 200 hours moving average............................................Hope this helps; helped me.
     
    #30     Mar 7, 2017