Replies to post #28135 on ETF SWING & DAY TRADING

[capt_jmj]

TC, the straight VTO method uses lower/upper limits of 30/50 respectively. How did you arrive at 28 for a lower limit in CSGCOS(not that it is that much different, and have you ever looked at increasing the upper limit to say 60 or 70 or waiting for a confirmation (such as decreased volume), before issuing a "sell/short"? I was using a modified VTO before coming to iHub, and I've noticed by bailing consistently at 50 you often leave a lot of money on the table, and volume dropoff is a pretty good sign that buying interest is fading. DMI might also be useful as a confirmation. Bottom line, by bailing at 50 you can miss a good portion of a sustained uptrend (may have a corollary on the downside as well).

[stock-trace]

my point is that in this -250 to +250 zone, the price is more reflective of market behavior, and price momentum weighted indicators, oscillators, and higher freq trending idicators have more relevence; ie: rsi, and the ppo at your settings. they are more likely to be accurate here. so i would just go with

if bull - stay long. if bear- stay with price > 10MA.

other issue is with vto 28 rs buy in the triple nasi negative area. many of the big hit drawdowns occured here. john murphy and mclellans say that major reversals come from low nasi levels, probably -500 to -1500 - so logically the rsi should be better in this area, with the -250 to -500 zone tough for sustainable rsi 28 based reversals. atleast in theory.

thx

st