Thursday, June 02, 2011 8:28:26 AM
bbgold - "Have you looked into using different chart timing for different trades?" Depending on the market that the SPX is in (BULL or BEAR) will determine how trades are made. Currently all buys are established using the SPX 60 min RSI(6) 30 level in both a Bull or Bear market. The selling points will be different in a Bull market verse a Bear market. During a Bull market the main Sell Signal is the Weekly UTL, During a Bear market the Sell Signal is the Daily UTL, because in a Bear market you obviously would not want to hang on to long positions for very long.
"Say once you enter into a Long using a Daily chart that you use the Daily chart for the Sell? Or do you always use the Daily for the Long but only the Weekly for the Sell?" As I said above the SPX 60 min RSI(6) 30 level is used for the BUY SIGNAL. Depending on the trader, you could use the SPX 60 min RSI(7) 70 level as a Sell Signal for very short term sells, the Daily UTL for short term sells, the Weekly UTL for medium to longer term sells, or the Monthly UTL for long term sells.
"I can see the advantage you have in using the weekly for the Sell but if the initial trade is triggered on the Daily then why not use the Daily to trigger a sell also?" I don't use the Daily to trigger a Buy. Normally the SPX 60 min RSI(6) 30 level will give good entry points. Also, I do not recommend "ALL IN" type trading, I recommend establishing positions at different price levels, because no one knows where the bottoms or tops are, my systems objective is to get the middle area.
"I know you want to be longer term to capture the trend but what disadvantages do you see to taking the short term profits?" None, the advantage to my system is it can be tailored to the short term to long term trader. You just pick the chart you want to use for the Sell Signal. I believe, the short term trader would do very well with my system.
Here is how my cycles have performed over time:
"Say once you enter into a Long using a Daily chart that you use the Daily chart for the Sell? Or do you always use the Daily for the Long but only the Weekly for the Sell?" As I said above the SPX 60 min RSI(6) 30 level is used for the BUY SIGNAL. Depending on the trader, you could use the SPX 60 min RSI(7) 70 level as a Sell Signal for very short term sells, the Daily UTL for short term sells, the Weekly UTL for medium to longer term sells, or the Monthly UTL for long term sells.
"I can see the advantage you have in using the weekly for the Sell but if the initial trade is triggered on the Daily then why not use the Daily to trigger a sell also?" I don't use the Daily to trigger a Buy. Normally the SPX 60 min RSI(6) 30 level will give good entry points. Also, I do not recommend "ALL IN" type trading, I recommend establishing positions at different price levels, because no one knows where the bottoms or tops are, my systems objective is to get the middle area.
"I know you want to be longer term to capture the trend but what disadvantages do you see to taking the short term profits?" None, the advantage to my system is it can be tailored to the short term to long term trader. You just pick the chart you want to use for the Sell Signal. I believe, the short term trader would do very well with my system.
Here is how my cycles have performed over time:
JMHO, Lindy
"Buy low, Sell high, stay with your system. If your system breaks fix it."
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