Re: About Trading&Trending RSI

[bbj@xxxx]

Hi Dimitris Tsokakis,
I like the word trading and trending. I will decide the trend first 
and the decide the trade.
In Sun & Cloud, my decision processes are as followings,
1. Decide the trend
a.Bull alert: When the red line crosses the mountain the stock is in
bull alert.
b.Bull confirmed: When the red line crosses the dark cloud and you 
may say the stock is in bull confirmed.
c.Bear alert: When the red line falls into the sun
d.Bear alert: the sun disappears
2.Trading,
a.Do long trade when bull alert. The white line should be on or 
above the red line. When the wite line falls below the red line, 
the stock is in "bull correction"(exit long). 
b.Do short trade when bear alert. The white line should be below the 
red line, and when the white line rise on or above the red line, I 
call it " bear correction"

Rember that the market is a circle. Thing reverses on their extremity,
bull confirmed<=>bear confirmed,and before the reverse ther should be 
a prelude,bear alert or bull alert. The stock price will not go up or 
fall straightly so there are bull correction and bear correction.

Hope this helps.
Best Regards,
CC Chen

--- In amibroker@xxxx, "DIMITRIS TSOKAKIS" <TSOKAKIS@xxxx> wrote:
> Hi CC Chen,
> I plotted your Sun & cloud (nice visual part).
> Is it possible to explain the
> "2.for Short term trading, reading the changes between the white 
line 
> and the red line"
> How do you trade this ?
> Dimitris Tsokakis
> 
> --- In amibroker@xxxx, bbj@xxxx wrote:
> > Hi Dimitris Tsokakis,
> > I am also headache, so I need others' opinion.
> > I tried to be a investor not a trader. I will regard the market 
in
> > bear when the lines drop below central line(zero line), and any 
buy 
> > signals may be traps. Unless it crosses the -100. Vice versa.
> > Hope this helps.
> > I also post a formula called Sun&Cloud at the AFL libary. Do you 
> > have any comments about it? Your comments are highly recommended.
> > 
> > Best Regards,
> > CC Chen
> > 
> > ps the code of the Sun&Cloud is as below. CC Chen
> > 
> > /*Sun & Cloud 
> > --Modified from Ichimoku chart by CC Chen*/
> > 
> > Long2 =ema( ( HHV( H, 20 ) + LLV( L, 20) )/2,20);
> > Long1 =ema( ( HHV( H, 5 ) + LLV( L, 5) )/2,10);
> > K=(H+2*C+L)/4;
> > Z= ( HHV( H, 3 ) + LLV( L, 3) )/2 ;
> > SP=iif(K>=Z*1.05,1.10*Z,iif(K<Z*1.05 and K>=Z,1.0*Z,iif
> > (K<Z,0.9*Z,0.9*Z)));
> > M=iif(Long1>long2,Long2,Long1);
> > 
> > maxgraph = 5;
> > 
> > graph0=M;
> > graph1 = SP;
> > graph2=Z;
> > graph3=Long2;
> > graph4=Long1;
> > 
> > Graph0style=6;
> > graph1style =8;
> > graph2style=4;
> > graph3style=6;
> > Graph4style=6;
> > 
> > graph0color=20;
> > graph1color=3;
> > graph2color=5;
> > graph3color=2;
> > graph4color=8;
> > 
> > title=name() + "{ Sun & Cloud } : "+writeif(Long1>long2,"Rising 
> > Sun","Dark Cloud Cover");