RSI 25 Explosions System?

[electron]

Quote from spongebob:


And lets not forget you gave the WL community the bollinger band system idea that has led to a myriad of derivative systems.

How is the BB system different from the Keltner's band system that has been around for some time and even published in some book? I don't know, but I suspect that it is the same idea, so what's a big deal? Creating systems is only a part of this business, not even the most important one, because if you cannot stick to your system and execute it as needed you are bound to lose anyway. That's where most people lose...

 

[steve46]

Hello

Relative Strength is one of the few concepts that is statistically valid. What does "statistically valid" mean. Well it means that one can test the concept and get a consistent and mathematically stable result time after time. To put it in useful terms. there is persistence (that means that relative strength continues to be exhibited by tradeable securities) over a 6 month period. So what can a trader actually do with that?

Easy, just wait for earnings reports and look for securities that exhibit strength OR look at indices that exhibit strength OR look for (sector) ETF's that exhibit strength. Then your job is to determine a stop loss, find an entry point, and try to hold on long enough to capture that 6 month ride.

For those that want statistical data, there are several texts that refer to this "characteristic" of the markets. Rather than get in a debate, interested parties just PM me.