TASR...was that the blow off top?
- Thread starter indahook
- Start date
If anybody's interested, there's a simple formula that can be applied to these situations. If nothing else, it'll prevent players from buying blow-offs.
Calculate the differences between price and the 17, 50, and 200d MAs and add them up. If they are >110%, be cautious. If they are >170%, you're going to get a correction.
(In this instance, 100% means double)
Calculate the differences between price and the 17, 50, and 200d MAs and add them up. If they are >110%, be cautious. If they are >170%, you're going to get a correction.
(In this instance, 100% means double)
Db,
Hi, how's it going? Who uses a 17ma? I look @ the 10, 20emas, & the 50, 200mas. Never heard of this but interesting. I have %s for 50, & 200mas if trading above. However, one must be careful with exceptions like TASR. They can exceed these parameters short term, & really do damage if you don't follow a disciplined strategy in conjunction.
Look forward to your reply!
L8R & God Bless You! Kelly
You can use whatever MA you like if you want to do the research. This particular bit was done using the 17, but the principle applies regardless of the MA length. However, if one uses a different MA, he'd have to start from scratch with the numbers.
The forest is determining levels of over-extension. The trees are the MAs used.
As for TASR, it's not an exception. Anything can "exceed" the percentages. Note the ">". Which is the point of the post.
