|
PureBytes Links
Trading Reference Links
|
Thank you superfragalist for your simple system. Having dropped the
ribbons onto the chart I find that when I zoom in and out for a
better perspective the ribbons change their position relative to the
price bars. Do you have any ideas how to oversome this problem.
Kind regards.
Keith
--- In Metastockusers@xxxxxxxxxxxxxxx, "superfragalist" <j3ttt@xxxx>
wrote:
> Here's a really simple way to make some money while you're learning
> more complex methods of trading.
>
> I like to use it to make a quick trade or two when my regular
trading
> isn't producing enough to use my capital account effectively. I
trade
> it on 30 min and 10 min screens. I don't know if it works well EOD,
> especially in a choppy market. I don't trade it that way so I don't
> know.
>
> Set up a new indicator and put in the following
>
> Moving Average Ribbon
> Periods := Input("Time Periods", 1, 1000, 20);
> Spacing := Input("Spacing", 1, 100, 5);
> Ribbons := Input("Ribbons", 1, 12, 12);
> BaseMA := Mov(C,Periods+(Spacing*0),S);
>
> If(Ribbons>=2,Mov(C,Periods+(Spacing*1),S),BaseMA);
> If(Ribbons>=3,Mov(C,Periods+(Spacing*2),S),BaseMA);
> If(Ribbons>=4,Mov(C,Periods+(Spacing*3),S),BaseMA);
> If(Ribbons>=5,Mov(C,Periods+(Spacing*4),S),BaseMA);
> If(Ribbons>=6,Mov(C,Periods+(Spacing*5),S),BaseMA);
> If(Ribbons>=7,Mov(C,Periods+(Spacing*6),S),BaseMA);
> If(Ribbons>=8,Mov(C,Periods+(Spacing*7),S),BaseMA);
> If(Ribbons>=9,Mov(C,Periods+(Spacing*8),S),BaseMA);
> If(Ribbons>=10,Mov(C,Periods+(Spacing*9),S),BaseMA);
> If(Ribbons>=11,Mov(C,Periods+(Spacing*10),S),BaseMA);
> If(Ribbons>=12,Mov(C,Periods+(Spacing*11),S),BaseMA);
>
>
> Open a 30 minute chart with the clean template and drop this
> indicator on top of it just like you were using a moving average,
> which you are. The default values are good enough for now. Set up a
> template so you can scan a number of stocks with it.
>
> You will see that when the price breaks out above or below the
> ribbon, it will keep it's momentum until it breaks down and returns
> to the ribbon, finds support and reverses or breaks through the
> ribbon. The same is true on the down side.
>
> When you have a stock that's breaking through the ribbons (both up
> and down), it's good for some small gains. To profit from these
moves
> you have to setup some trading rules. Keep them simple.
>
> 1. Set a profit target. If the target is met, get out even if the
> trend is continuing upward. The slope of the bands tell you the
> strength of the trend and the likely hood it will continue.
>
> 2. Exit the stock if it starts moving sideways in a trading range
> pattern.
>
> 2. Absolutely get out if the price turns back toward the bands and
is
> heading toward them in a steep decline (or rise) or if it touches
the
> bands.
>
> The point here is to make money, not ride the trend until it's
> exhausted.
>
> Don't email me asking for an exploer program to find the 10 stocks
> that are on the edge of the ribbon. You don't need one.
>
> Take 100 of your favorite stocks, open 30 minute charts on them
with
> this indicator in each one, and you'll see which ones are good
> candidates for the next day. In addition, most stocks will move
> through the bands several times over several days on a 30 min
chart.
> Of course, they will move more often through the bands on 10 min
> charts but the moves are usually shorter.
>
> I'm sure there's plenty of "boo" birds who want to take exception
> with what I'm saying. If you feel the need to comment, make the
> comments constructive rather than trying to impress everyone with
how
> big your ego is. For those half wits that show up here sometimes--
> constructive means providing alternatives that help "everyone"
learn
> better ways to do things, not embarrass or put them down.
>
> Now that that's out of the way, check it out. It's an easy method
for
> beginners to use (I use it, and I've been trading for a living for
> several years.)
>
> You can also use it to learn how to read your indicators. Basically
> your indicators should be picking up the price moves slightly
before
> a stock enters the bands or when it's in the middle but hasn't
broken
> out yet.
>
> Some people will argue you can use one or two moving averages and
> accomplish the same thing. That's true, you can. However, this
method
> is simple and works well. I think it can help break the habit of
> wanting to only buy bottoms and sell tops. You'll grow old and poor
> trying to do that. By the time the a stock breaks through the
bands,
> it's a long way from it's bottom, and if you stick to the trading
> rules you'll never sell it at it's top.
>
> Sometimes I compare my other systems against something simple like
> this to see how efficient they are over the basics. I have sadly
> found that often I don't need to bother with whatever brilliant
idea
> I just got, when I can make more money just keeping it simple.
>
> Don't over analyze. Don't complicate the decisions. Follow the
three
> trading rules--write them down and glue them to your computer
screen--
> and at the end of the day you will be up for the day. You won't
have
> made the maximum on each trade, but you will have had many more
> profitable trades than unprofitable ones.
>
> Give it a try. Be conservative and be careful.
>
> Good luck!
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for Your HP, Epson, Canon or Lexmark
Printer at Myinks.com. Free s/h on orders $50 or more to the US & Canada. http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/sO0ANB/LIdGAA/ySSFAA/zMEolB/TM
---------------------------------------------------------------------~->
To unsubscribe from this group, send an email to:
Metastockusers-unsubscribe@xxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|