Advanced Trading Methods

[gloe]

Well, I looked at the data with the ADX -- seems very possible to catch the times when a trend is ending, or a "mini trend" I should say. Of course the ADX cannot tell you that the change is to a new trend or to consolidation.

There were a few periods of excessive chop on the RUT (like the NDX has been recently). I know what will happen. After a few whips (small losses or gains, with rapidly changing signals) the shorter term charts are going to have the MAs going sideways on them. So you stop trading until you can identify either a trendline break on the 30/60 min, or a price point of reference, such as an important daily MA or other S/R (double top/bottom etc.).

That is all. I am going to watch this and paper trade it for 6 months before I decide what to do with it. I want to see how it behaves through all sorts of market conditions, what kind of drawdowns there will be, and how good I am at catching the moves that require some discretion. I will continue to trade NERS in the meantime, but at least with an eye on what the signal is with GIPS.

RUT currently is in a mini trend. GIPS signal is still long.