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Lee,
I have to agree with Steve. There's a lot of hoopla about the RSI and
using various models of it. TASC has had several articles about it
recently and there are a number of recent books out on its use. By
using faster models you avoid the divergence dilemma.
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, Steve Karnish <skeeter47@xxx>
wrote:
>
> Lee,
>
> The blue line, in the upper frame on the chart, is what I think is
your RSI....is this similar or matching to your formula? Keep in
mind, divergence is a very nasty trap and can only be applied
randomly as it occurs. Divergence equals subjectivity. How much
does an issue diverge before you can safely time yourself into a
trade (a little divergence, a little more divergence, or ad nausem
divergence)? Many educators teach divergence with certain momentum
oscillators (RSI, CCI, etc.). But, none of them ever define how much
is the right amount of divergence. I'll stick with a faster, more
reliable and profitable StoRSI.
>
> Your thoughts?
>
> Steve
>
> --- On Wed, 6/25/08, Lee Lucas <leeontherun@xxx> wrote:
>
> From: Lee Lucas <leeontherun@xxx>
> Subject: RE: [EquisMetaStock Group] Low Volatility Stocks...RSI
> To: equismetastock@xxxxxxxxxxxxxxx
> Date: Wednesday, June 25, 2008, 5:18 PM
>
>
>
>
>
>
> Hey Preston,
>
> The thing I like about RSI compared to most other indicators is
that other indicators tend to be lagging indicators where as an RSI
can show a slowing or change in direction earlier than the price
shows.
>
> In combination I have also made a moving average of an RSI i.e. Mov
(RSI(C,14) ,40,E) and looked for cross overs. This can cut out a lot
of noise. Works similar to a MACD I suppose.
>
> Further more Divergence which has been quoted as being the most
robust and secure oportunity to take a trade uses RSI or MACD. For
those who don't know of Divergence - this is when price continues in
it's direction while the other indicators (RSI or MACD) have already
turned to go back. The assumption is that price will then turn back
to keep up with the indicator.
>
> Lee.
>
>
>
>
> To: equismetastock@ yahoogroups. com
> From: no_reply@xxxxxxxxxx s.com
> Date: Wed, 25 Jun 2008 14:27:21 +0000
> Subject: Re: [EquisMetaStock Group] Low Volatility Stocks...RSI
>
>
>
>
> 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@ yahoogroups. com, Lee Lucas
<leeontherun@ ...>
> 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@ ...: andysmith_999@ ...: 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.
> >
> >
>
>
>
>
>
> at CarPoint.com. au It's simple! Sell your car for just $30
>
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