What are the most important things for Technical Analysis?

[lightninboy]

Same charts, just a different trading system.

Buy funds when the 14-day RSI becomes more than the 20-day RSI.
Sell funds when the 14-day RSI becomes less than the 20-day RSI.

That system doesn't necessarily work all the time.

I'm back to:
Buy funds Buy funds when the 14-day RSI and 20-day RSI total more than 100.
Sell funds when the 14-day RSI and 20-day RSI total less than 100.

As for using the RSI for overbought/oversold, what period of RSI do you use?, how much do you call it?, 70/30?, 80/20?, 65/35? Does the same thing work every time for every fund?

Any strategy will have some losses. Typically, successful traders have many small losses.

 

[Xela]

So lightninboy, are you saying you buy funds essentially when their RSIs are high, and sell them when they are low?

I know you're asking him and not me, but that doesn't seem to me to be what he said, at all.

If so, isn't that kinda-sorta the opposite of what RSI is supposed to do - isn't it an over-bought/over-sold indicator?

In so far as the concepts of "overbought" and "oversold" are relevant to simple indicators, doing the opposite could easily be more likely to be beneficial (even though that isn't what he was actually saying), because those concepts are basically nonsense. "Just saying'" ...

 

[lightninboy]

I streamlined the screening process to buy only funds with high weighted alpha, which usually results in buying funds with positive Awesome Oscillator divergence (green on an Accelerator Oscillator).

 

[lightninboy]

I made some changes.

Buy funds when the 9-day RSI and 50-day RSI total more than 100.
Sell funds when the 9-day RSI and 50-day RSI total less than 100.

 

[lightninboy]

I've got a new screening process. It gets me in at the accumulation cylinder. There's a minor discrepancy between screener RSI and chart RSI, I have noticed.

 

[KerryNewman]

Have a specific DEFINITIONS of a trend. Then you can decide to use TA to help time trading with the trend or against it as in mean reversion. Make sure to pick ONLY 1 trend indicator , ONLY 1 momentum indicator, ONLY 1 volume indicator!! Newbies tend to pick too many of the same type of indicator that obviously coincide. This leads to poor decisions because only a part of the puzzle is known.

I agree, using more than one indicator based on say, price for example. They will all pretty much give you the same reading. Unfortunately some people take these multiple indicators as "independent" results but they are all "dependent" on the same base (pricing as the base for this example). I use 1 of these: Stockastics, RSI, several moving averages, or Bollinger Bands in coordination with support and resistance, trending, chart reading.

 

[lightninboy]

I decided using the 100 Cents system is about the best and simplest I'm going to find.

 

[lightninboy]

Buy funds when the 9-day RSI is higher than the 50-day RSI.
Sell funds when the 9-day RSI is lower than the 50-day RSI.

 

[lightninboy]

I always said that if I had traded opposite the way I did I would have made a lot more money, but I never put together such a system until now. Chuck Hughes and Ricky Gutierrez seem to be making a lot of money.

The Chuck Ricky System:

Buy positive Weighted Alpha funds when the Bollinger Bands say Sell and the 9-day RSI is lower than 40, 30 if in doubt.

Sell positive Weighted Alpha funds when the Bollinger Bands say Buy and the 9-day RSI is higher than 60, 70 if in doubt.

 

[lightninboy]

Chuck Ricky Trading System:

If you can buy and sell ETFs well, there’s no need to trade anything else.
If it looks too volatile, sluggish or limited, don’t buy it.
Make every purchase less than 1% of your portfolio.
Do all of your buying and selling in person.
Buy sensible-looking (such as having liquid volume) positive Weighted Alpha funds when the 9-day RSI is lower than 30 or dang near. You are practically guaranteed an opportunity to sell it at a profit at 60 or 70 or if things get desperate at least nearly break even on it at over 50, so have no fear.

Funds with negative Weighted Alpha tend to be better suited for short selling.