One thing that people should keep very much on the front of their minds when looking at these numbers.
These numbers tell you the right direction for the stock. However, it says nothing about timing. You still need to decide, however you decide, how and when to get into a stock.
You can use all sort of methods for this, For example, you can use ACD for timing. My favorite is simple S/R and momentum, i.e., Market Profile. You also have to know how you got into the stock. So, if it is a momentum trade, you have to know when to exit, regardless of the ranking. If it is S/R, then you have more leeway since this sort of stock moves slower and gives you more time to react and therefore cut errors, but you still have to think on a daily basis. Finally, if the decision is strictly on investment time frames (for the sake of this model, more than four months), you can just use pure rankings to get in and get out.
All stock model does is eliminate a choice of direction when putting on a position for a stock. It says very little about timing on small or even small-intermediate time frames.
So for example, say you play the Don Bright opening only strategy. One way to use these rankings on the trading time frame (intra-day) is to be aggressive long on high rankings and be aggressive short on low rankings. This at least keeps you on the right side of the market's view of the stock if something goes bad, or give you the extra umph when things go well.
These numbers tell you the right direction for the stock. However, it says nothing about timing. You still need to decide, however you decide, how and when to get into a stock.
You can use all sort of methods for this, For example, you can use ACD for timing. My favorite is simple S/R and momentum, i.e., Market Profile. You also have to know how you got into the stock. So, if it is a momentum trade, you have to know when to exit, regardless of the ranking. If it is S/R, then you have more leeway since this sort of stock moves slower and gives you more time to react and therefore cut errors, but you still have to think on a daily basis. Finally, if the decision is strictly on investment time frames (for the sake of this model, more than four months), you can just use pure rankings to get in and get out.
All stock model does is eliminate a choice of direction when putting on a position for a stock. It says very little about timing on small or even small-intermediate time frames.
So for example, say you play the Don Bright opening only strategy. One way to use these rankings on the trading time frame (intra-day) is to be aggressive long on high rankings and be aggressive short on low rankings. This at least keeps you on the right side of the market's view of the stock if something goes bad, or give you the extra umph when things go well.