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Re: [EquisMetaStock Group] Low Volatility Stocks...RSI



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Lee,

I would love to hear more about how you are using the RSI and ATR. 

Also wondering if you have read Baeyens book on the RSI?

Preston


--- In equismetastock@xxxxxxxxxxxxxxx, Lee Lucas <leeontherun@xxx> 
wrote:
>
> 
> It may be much easier to understand and see on a chart if you can 
ship the backtest formula.
>  
> I play alot with RSI and ATR
>  
> Lee.
> 
> 
> To: equismetastock@xxx: andysmith_999@xxx: Tue, 24 Jun 2008 
03:55:13 +0000Subject: [EquisMetaStock Group] Low Volatility Stocks
> 
> 
> 
> 
> I've been experimenting with this methodology:Every weekend I use a 
screen to get stocks with certain fundamentals(based on P/S, P/E, 
etc). Then I rank the list by 13 and 26 weekrelative strength and 
discard any stocks that are not near the top onboth lists. This 
leaves me around 20 stocks per week. Then, I look at the 20 charts to 
see which charts have nice, smooth,up trends. I each chart is 
displayed:-- ATR(10), this is used to calculate position size-- ATR
(10)/Close, this is used to get a sense of volatility-- ATR(10)/ATR
(50), this is used to get a sense of "is the stock morevolatile than 
usual"The ATR(10)/Close usually works out to be around 3.5% to 5.5%. 
Here'sthe part I'm still grappling with: I ignore any stocks above 
4.5% sothat I end up with the smoother, tighter up trends. Please 
share anythoughts on this.PS. I owe much of this to Roy's newsletter 
and Super's posts over thelast few years.  
> 
> 



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