Chorlton said:Once again, thanks for the reply & I apologise if my questions are a little basic
With regard to RSI, can I ask what levels constitute a buy and sell for you. Do you use the standard 30 & 70 levels??
I ask because from memory I have noticed a number of stock charts that due to their constant upward (or downward trend) have the RSI either in the overbought or oversold areas for a great amount of time. Even when the stock undergoes a pullback the RSI can still maintain at a level either above the 70 or below the 30 levels.
Unfortunately, as I'm not at home I am unable to check my charts and confirm which stocks these are.
Consequently, in these cases I have found the use of RSI to not be very effective but obviously I would welcome any advice on how I can make better use of this indicator.
btw I hope your trading is also going well...........
Chorlton
Splitlink said:I'd go further. I don't think that any indicator based on averages is any better than using an average itself , and averages are simpler to construct. I believe that it is all there, in the plain bar, or candle, chart. The fact that I can be as blind as a bat doesn't change it A medium average to give an idea of how the trend is going, is all I use, but I am going thrugh a unsuccessful period at present- good job that I seem to be OK on keeping losses under control. The trouble with bad patches, as far as I am concerned, is that I am inclined to try new methods- a waste of time, in my view.
What do you think of an MACD signal, used in conjunction with pullbacks? If averages rise, buy on pullback. If average falls, sell on pullbacks?
Split
hungvir said:Jon, Split and Chorlton,
What a good discussion! And I agree with what you said. I haven't found any golden indicator and am not using any indicator for triggering trades. They're there as additional sensors.
At the moment, I am working on my exit strategy. I was just stopped out of EMG this morning and though I made 80 points, I could have made 160. I'll see if it's a good idea to trail my stop that soon.
Good trading,
Hung
hungvir said:This is the piece of news that dragged EMG down today. It took me by surprise as I think it's one of the best shares to have at the moment. Will have a look at the chart and long it again tomorrow.
http://www.advfn.com/p.php?pid=nmona&cb=1147202222&article=15341083&symbol=LSE:EMG
Chorlton said:Hung,
For your info, UBS recommends Man Group as a BUY today, with a target of £32
Regard,
Chorlton
hungvir said:Thanks, Chorlton! I appreciate it. From the chart I also saw enough strength for it to go all the way to at least 30.
Best,
Hung
hungvir said:EMG stood at around 2200 in early March. It's has now touched 2750. Assuming no change in trend, another 250 point rise is not too wild a dream
Anyway, I already put in a stop buy order for it. If it can rise above yesterday's high, I'll be in the game again.
Good trading,
Hung