S/R Emini Journal
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OK Romik & 4re,
(and of course, whoever else wants a look)
According to the table listed at Dick Arms' website, I overlayed a 4, 21 and 55 day SMA on a daily chart of the TRIN.
According to the table listed, we are:
1. No longer oversold on the 4 SMA, (it's at 1.07), but I bet we were oversold before the blast-off on Thursday!
2. Still oversold on the 21 SMA (it's at 1.1819)
3. Still oversold on the 55 SMA (it's at 1.1051).
Hope this helps you (it certainly gives me some insight) - jeez, the things ya learn here!
Later,
Jimmy
Quote from romik:
partner
I had a look at Jimmy's chart and 10MA is almost at the over sold area (had to be @ or above 1.2) at the moment it's @ 1.1 pretty much both on daily and weekly, so yes we can see a pullback, if looking at TRIN alone.
The model from Dick Arm's site is much better. By inference (interpreting the 4, 21 and 55 day SMA's) it tells the trader when the market is:
a) extremely oversold/overbought (4, 21 and 55 sma's line-up)
b) moderately oversold/overbought (21 and 55 sma's line-up)
c) slightly oversold/overbought (55 sma is still giving a signal)
At least that's the theory, it's gonna take a lot of backtesting to determine whether this is true or not and I'm willing to bet cash money on it.
Later,
JJ
Quote from romik:
I had a look at Jimmy's chart and 10MA is almost at the over sold area (had to be @ or above 1.2) at the moment it's @ 1.1 pretty much both on daily and weekly, so yes we can see a pullback, if looking at TRIN alone.
I am hoping short term,anyway. But looking your weekly chart it looks like we were in a bullish wedge. Thursday we popped out of it. There is still some room to pull back and still give us that Aug rally. These Damn weekends give us way too much time to think. I hate thinking, makes me doubt too much. And now JJ has to go around and learn more so he can come back and teach us. Too much stress on all of us...
LOLHey Romik,
On a side note do ever read the books by Dr Alexander Elder or Thomas Bulkowski.
It is funny because you trade use very similiar method to Alexander Elder and mine tends to be just like Thomas Bulkowski. I think it is good to read both because both methodologies work real well. Just a choice we both made I guess. If you don't have Getting Started in Chart Patterns by Thomas Bulowski I think it one you would like. It has been a long time since I read it but I found it in my bookcase this weekend and started thumbing through it. See now I am thinking again, Damn it...
On a side note do ever read the books by Dr Alexander Elder or Thomas Bulkowski.
It is funny because you trade use very similiar method to Alexander Elder and mine tends to be just like Thomas Bulkowski. I think it is good to read both because both methodologies work real well. Just a choice we both made I guess. If you don't have Getting Started in Chart Patterns by Thomas Bulowski I think it one you would like. It has been a long time since I read it but I found it in my bookcase this weekend and started thumbing through it. See now I am thinking again, Damn it...
I hardly ever read any books on trading any more, I used to, haven't read neither of the authors that you mention. Occasionally I would reference some info on sites and exchange between other traders. I am currently involved in 2 types of trading - breakouts and divergences. I would say breakouts is still my primary system, though divergence studies/research/trades are improving dramatically. My cousins started with futures aggressive trading, look at them now man, what don't they do now? I've passed a call over to them some time ago, they traded it with quite big account size, I got my drink out of them recently
Quote from 4re:
I hate thinking, makes me doubt too much. ... Too much stress on all of us...
Yeah, tell me about it.
Unfortunately, as I determined years ago, this type of anlaysis is used mainly by stock investors, and while it may be of some use if you're playing medium term options, it just isn't useable on an intraday time frame consistently enough to make it practical (and sometimes it generates cross signals (overbought on the 4SMA and oversold on the 21 and/or 55 SMA, etc).
Here, take a look for yourself. (hope this thing loads)
Great idea though, speaking of reading, maybe if we read the guys book we'd know how he uses his indicator!
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