Problems with my ENTRY indicators

J

jimclark

I believe I need to twick the setup since by the time I discover the stock its daily price is soaring and up beyound entry point...so I end up waiting for few days untill the pullback.

I appreciate if you can critiqe my setup.

Long Candidate Criteria:
1) Scan Weekly charts (I use StockCharts.com) w/conditions
a) BULLISH MACD Crossover
b) MACD Histogram in POSIVE at least 2 ticks.
c) Price is below 26-bar EMA (26 weekly bars...half of year) waiting to snap back up.
d) Wm% rising (don't mind suggestions how to use it best)
e) RSI rising.

PROBLEM AREA - entry.
I use DAILY chart to identify entry and enter under these conditions:
aa) Daily MACD bearish/bear
bb) Stochastic - oversold..or close to oversold
cc) Force Index below zero
dd) Hit Upper Chanell of Bollinger Band

Problems is often when conditions in WEEKLY Chart are true but conditions in DAILY'S aa), bb), cc) are not true..normally aa), bb), cc) are rising as well when WEEKLY is ralling BUT EVENTIALLY they'll fall and signal ENTRY. Problem is sometimes it takes days if not weeks for it to generate an entry point in other words for Daily indicators to decline. While waiting for Daily's to dicline I feel it's an opportunity cost, I could risk entring while Daily are still in "rally" mode but not quite able to tell when it might end..unless it's obvious by hitting Upper Bollinger Chanell.

Is it any clear? How can I identify ENTRY points SOONER and earlier Before DAILY's rally...so I don't miss the party?

Thanks for any constructive critizim?
 
all of these are lagging indicators.

since you're working on daily charts, and I assume you are position trading, why don't you get rid of all these moving average indicators and simply analyze support and resistance levels and combine it with some fundamental analysis.

another thing - since you're targeting oversold stuff, you are definitely not playing momentum (ie you are countertrend trading), so you almost need to do the above primary. i know you are waiting for macd to come up a little bit, and waiting for bollinger upper to be hit, but perhaps you are picking dead cat bounces because of this? If you're already hitting the upper portion of the bollinger band, are you just buying at the top of this 'dead cat'?

do you do any fundamental analysis or look to see if news/economic catalysts are having any impact on your picks?
 
I think you are doing it backwards. Find something that looks good on a daily chart first, and then confirm that weekly is rising.
 
Quote from scriabinop23:

all of these are lagging indicators.

since you're working on daily charts, and I assume you are position trading, why don't you get rid of all these moving average indicators and simply analyze support and resistance levels and combine it with some fundamental analysis.

another thing - since you're targeting oversold stuff, you are definitely not playing momentum (ie you are countertrend trading), so you almost need to do the above primary. i know you are waiting for macd to come up a little bit, and waiting for bollinger upper to be hit, but perhaps you are picking dead cat bounces because of this? If you're already hitting the upper portion of the bollinger band, are you just buying at the top of this 'dead cat'?

do you do any fundamental analysis or look to see if news/economic catalysts are having any impact on your picks?
More...
I don't do any fundamential analysis nor trade the news
 
If you trade daily charts then you use weekly charts to confrim.

If you trade weekly charts you should use monthly charts to confirm.
 
Quote from jimclark:

See...Weekly was in good BULLISH mode but DAILY has already rallied...so I have to wait for it to pull back to enter..
More...

You do not use shorter time periods to confirm longer time periods. You do the opposite.
 
Quote from scriabinop23:

all of these are lagging indicators.

since you're working on daily charts, and I assume you are position trading, why don't you get rid of all these moving average indicators and simply analyze support and resistance levels and combine it with some fundamental analysis.
I am not working on Daily charts...I am working on BOTH Weekly and Daily but I use DAILY for ENTRY.
Yes, Support & Resistence are part of my formula including double tops and bottums.

another thing - since you're targeting oversold stuff, you are definitely not playing momentum (ie you are countertrend trading), so you almost need to do the above primary. i know you are waiting for macd to come up a little bit, and waiting for bollinger upper to be hit, but perhaps you are picking dead cat bounces because of this? If you're already hitting the upper portion of the bollinger band, are you just buying at the top of this 'dead cat'?
Why do YOu think I am targeting oversold stuff? I am not, I am trying to find an emerging trend.

do you do any fundamental analysis or look to see if news/economic catalysts are having any impact on your picks?
More...
 
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