Spydertrader's Jack Hershey Equities Trading Journal III
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I'm confused. MACD is a function of price. So any levels you use must scale with price.
What does MACD Histogram > 0.4 mean?
Using MACD(5,13,6):
MACD fast line = 5EMA - 13EMA
signal line = 6EMA(MACD fast line)
MACD Histogram = fast - signal
All of the above scales with the absolute price. So if 0.4 is your MACD histogram level for a $20 stock, I would expect you to use 0.8 for a $40 stock, 0.2 for a $10 stock etc.
Am I missing something and 0.4 "just works"?
Apologies if this has been debated before.
Worry about the math later. For now, I use TC2000 as well. It is too restrictive for this method IMO. Maybe if you did the end of day version it might work out. Jack used the old version but when they updated it around 2000(?) his functions or scan wouldn't work.
I haven't used the intraday version. It is possible to make a scan that will emulate the lists here. Maybe snapsheets will help as well. After trying Qcharts I was spoiled so though I still have TC2000, not using it.
Regards - EZ
I have been MIA working away trying to really nail down this equities stuff. I think I am near the end of the tunnel so to speak and have realized that it was KISS all along.
These journals really are the nuts and bolts of equities trading.
For those just getting into this stuff, AMT4SWA's posts on cycles really helped me re-align and get back on the right track.
Good fortunes to everyone in the new year!!!!
jc
These journals really are the nuts and bolts of equities trading.
For those just getting into this stuff, AMT4SWA's posts on cycles really helped me re-align and get back on the right track.
Good fortunes to everyone in the new year!!!!
jc
Welcome Back!
You have a link to those posts by any chance?
- Spydertrader
Haven't even looked at snapsheets. I love TC for quickly scanning the market and going though the sectors. It just isn't set up well for real time trading. A PCF can easily be created for unusual volume, but would have to be updated on the fly if using it intraday. In fact I believe most of the Hershey method could be programmed into a scan. You can export lists that should be able to be imported in to QCharts. And it could be useful to try and improve the universe at some point.
PM me if you want info on some Canslim scans for TC, and how I used TC for trading.
BTW, good to see you around. I've read the Jack Hershey Trading thread you started several times.
Regards - EZ
I see we are now having a decent discussion on Telechart. For those that don't know, to give you an idea of how good the program is, I have probably spent a minimum of 15,000 USD on trading software over the years, and it is one of the best packages I've ever used. The ability to quickly scan charts, group charts, import symbols, etc for 25 USD / month is incredible.
I've taken a stab at creating a scan with Telechart 2007 using as much of the Hershey method as possible. The only problem is that while I get a universe of roughly 200 stocks, they bear little resemblance to the stocktables.com list.
I'll take a look at my settings and see if together we can't work it out.
I've taken a stab at creating a scan with Telechart 2007 using as much of the Hershey method as possible. The only problem is that while I get a universe of roughly 200 stocks, they bear little resemblance to the stocktables.com list.
I'll take a look at my settings and see if together we can't work it out.
I don't want to go get too far off topic here, hopefully this will help out. You need to create PCF's or scans that will emulate the EPS and RS of IBD. You can get close but you won't get a match because we don't know exactly how IBD does the calcs. Plus TC's Fundamentals will only let you go so far with the EPS.
A study the EPS values in IBD shows they weight each criteria they use, you can have a bad quarter in earnings but all other data (profit margins, ROE etc) were good and still might keep you at over 80 EPS. Can't do that in TC as you have to set minimum and maximum levels for each criteria. RS is a bit easier. While I could provide scans or pcf's that would get you close, I believe it would be damaging to the learning process here and divert the focus from where it needs to be.
Getting the "quality universe" is only part of the puzzle. While I'd love to into pcfs and scans, the IBD type scans used here are followed by a lot of people trading different methods - the >RS80, >EPS80. That helps the quality as so many people are looking at and trading these stocks because of their positive qualities - a modern day "margin of safety". You rarely have one of these getting cut in half overnight as you would in a different group.
It's much more important to get the trading method down. Later down the road, the group variances won't matter as much.
Regards - EZ
A study the EPS values in IBD shows they weight each criteria they use, you can have a bad quarter in earnings but all other data (profit margins, ROE etc) were good and still might keep you at over 80 EPS. Can't do that in TC as you have to set minimum and maximum levels for each criteria. RS is a bit easier. While I could provide scans or pcf's that would get you close, I believe it would be damaging to the learning process here and divert the focus from where it needs to be.
Getting the "quality universe" is only part of the puzzle. While I'd love to into pcfs and scans, the IBD type scans used here are followed by a lot of people trading different methods - the >RS80, >EPS80. That helps the quality as so many people are looking at and trading these stocks because of their positive qualities - a modern day "margin of safety". You rarely have one of these getting cut in half overnight as you would in a different group.
It's much more important to get the trading method down. Later down the road, the group variances won't matter as much.
Regards - EZ
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