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Re: Florinda post# 460

Thursday, 09/23/2010 11:21:24 PM

Thursday, September 23, 2010 11:21:24 PM

Post# of 488
Steve, use your intuition.
1. look at my daily chart.
2. read my idiot notes for volume money.
3. read Lowtrade's condensation of "trend" & "momentum" at the bottom of this post.
4. make two screens on your computer of this post and the daily chart; look at both.
5. you better learn to be a numbers guy when it comes to TA or you are going to lose your ass over time. smile
6. as for today: I am very happy we are in a consolidation for me to pounce on this one.

How to use indicators from Lowtrade compiled from his posts. Quick & condenced for reference:

Momentum
TRIX - rate-of-change of smoothed moving average momo
StochRSI - overbought and oversold levels in RSI momo
ROC - percent change momo
Stochastic - over bought / over sold momo
RSI - Average Gain / Average Loss momo
WM%R - price close vs. range top /bottom momo
----------------------------------------------------------
Trend
Aroon - close high /low trend
DMI - price direction / ADX strength trend
ATR - gap /small move - up down reversal trend
Macd - +/- moving averages - direction & strength trend
PPO - increasing / decreasing price trend
-----------------------------------------------------------------
Volume
PVO - increasing / decreasing volume volume
OBV - close above vs below totals volume
Acc/Dist - ave close totals volume
CMF - A/D strength divided by volume = pressure volume
MFI - RSI volume-weighted volume

TRIX & Aroon are trend indicators, not momo. As they are not oscilators but do present a stocks trend indication.

momentum/ trend indicators
RSI, & MFI; are oscillators. Good for support of trend.

MFI over bought over sold; 0 to 100, 50 is zero
RSI over bought over sold; o to 100, 50 is zero

The Money Flow Index (MFI) is a momentum indicator that is similar to the Relative Strength Index (RSI) in both interpretation and calculation. However, MFI is a more rigid indicator in that it is volume-weighted, and is therefore a good measure of the strength of money flowing in and out of a security


Volume indicators

OBV & CMF are volume indications good for pressure expected when a move starts.CMF shows pressure. 0 is zero + positive, - negative
Accumulation Distribution shows pressure, bottom is zero shows increasing and decreasing. Not +/-
OBV being less useful then AccumDist, AccumDist which is in turn less useful the CMF. Because AccumDist was an improvement to OBV and CMF an improvement to AccumDist. We should always put more weight on CMF.

Being in or being out vs.get in or get out: RSI and MFI

Like StochRSI, MFI shows 2 indications. Strength & overbought/oversold, because it graphs like an oscilator. It mainly relies on RSI for it's basis.

MFI uses volume with RSI to determine if more money is coming into a stock, then going out. And because the consensus is, price follows volume. You can judge entry/exit with the RSI position on the graph. MFI above 80 signals entry and below 20 exit.

While StochRSI signals Be In the stock or Be Out of the stock. MFI signals get In or Out.

It has a different focus then OBV, Acc/Dist, or CMF. While being in the volume group, because it uses volume in it's formula. It is mainly used for decision making, rather then support.

Like the Aroon, I disagree with where the books place this indicator. I would put it in the momo group, where you find other decision making indicators. They have the aroon in the momo group for decisions and I would place that in the trend group.

RECAP, MFI determines entry exit, or positive negative momentum. It's name and placement in the volume group is misleading. IMO


Summery
Choose 3 indicators, one trend, one momentum & one volume. Your watching for trend entry, will retail support your decision and how strong to expect any move you enter, will be. My choices to fulfill these are DMI, StochRSI and CMF.

.

sources

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45219382&txt2find=mfi

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45336616&txt2find=mfi

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45337703&txt2find=mfi

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=48320279&txt2find=mfi

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=46259534&txt2find=mfi

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