Replies to post #28946 on ETF SWING & DAY TRADING

[Duma]

I have started using RSI<28 (VTO) as one trigger to go long. 73% success rate is not too bad. Yesterday's reading was 55, currently <39. Probable take another day or two to hit it, if it even does on this dip.

Cheers,
Jon

[husk]

hi daaverage...When the NDX closes above 5 ema, I will start to evaluate things closely, and that alone may be enough (the NDX 5ema)... The contrary direction of the NASI can make me delay a reversal another day...if the NASI reverses above 4 ema, that is confirmation enough..but I do not always wait for the NASI itself since there is a delay, but do look for the volume moves that indicate a directional change.

A second reason to go long would be an rsi(5) below 25, or the slow stoch crossing upward from below 20...or a positive divergence from below 100 on the CCI(20)..by that I mean the CCI valleys are higher while the price is lower or about the same.

It is a "feel" system, rather than a rigid set of rules...the feel comes from use.

I use a fixed stop-loss to limit losses to 5%. It has had to be seldom invoked because the 5ema on the NDX price will generally keep oneself on the right side of the trend..the whipsaws in a sideways move are part of the price to be paid..

I suggest some paper trading going forward before using it...it is easy to be mis-lead looking backward, because it is too easy to be using hind-sight. The real test is the unkown of the forward moves. regards.