Jdw

[zambuck]

I attach a PDF file with charts for above security...Sorry but I tried to post all these without any sucess so took easy way out and converted in PDF file...

It's my trading decision on JDW and how long I watched it, which indicators I used and when did I buy etc...

All charts are layouts in Metastock....

Your comments would be appreciated...

Next time I will try to post charts on the thread....

 

[esiotrot]

Hi Z

I also use Metastock exclusively for EOD and my comment after a quick look would be that:

I would have risked a buy on Dec 31st 2002. Although more likely to be 02/01/2003. Based on CMO cross, RSI back over 30 from extreme oversold and MACD cross. These signals were triggered by the recovery from the sharp fall 28 Nov.

I would then have been pleased to see a move to the top Bollinger and then concerned when it drifted back down and tested the previous lows. There were no oversold signals during period.

The better entry would be the simple trendline break and confirmation on 8th. April.

The current price is now approaching a long term down trend and I would be seriously considering getting out at this point.
My indicators are showing overbought levels.

Volume has not been very useful as an indicator.

I have also looked at Three Line Break charts and I reckon that for trading reversals they have got a lot going for them. you may miss the actual trend break but you would expect to get the majority of the move.

However, back to your commentary and trade:
My first reaction was that you are using way too many indicators and that simple TA would have got you into the trade around the same time. What's interesting is that you deduced from the (small) moves in these indicators that this was a stock worth watching in the first place.

Obviously your efforts got you a good trade and I wonder whether you could "automate" this into a Metastock exploration
You have used the Explorer in MS in the first instance and I'm sure you know that you can build your own formulae and explorations.

 

[zambuck]

Hi esiotrot

Thanks for the comments...I understand what you are saying..My comments as below...

I agree that it is now OB and indeed the price has started to reverse...I was perhaps greedy and decided to hang on...after all nothing risked...(or ventured!!) nothing gained...but in this case I may lose part of my profit...but we learn and live to fight...

I also agree a simple trendline break would have done it as well...but I keep looking at all other indicators as well more as a learning and watching scenario just to see how these work and if I should use these at all...Metastock is littered with Indicators but the ones that have worked very well are Demand Index, Aroon, CMO, CCI etc etc...some have failed miserably...

3 line reversal is something I have started using instead of point & figure because it is more user friendly...and you are right that because it caters for minor whipsaws the signals are delayed....Now if I keep watching this chart now to wait for a reversal then I will lose few bobs..So I tend to use this chart to see an established trend ( 3 green bars) and after that for selling I ignore this chart completely...

What I have done is created Layouts in Metastcok with many indicators that I want to see and test... So for example I have got layouts called TREND, MOMENTUM, VOLATILITY, MARKET STRENGTH, SUPP AND RES and CYCLE...which contain all these by default..I have created icon for all these and so these would appear every time I click on a layout...I may not use many anyway..but it gives me chance to change a security and all these would change to reflect that...All the charts you saw appear with a single click on

It is possible to automate this perhaps but what I tend to do is run explorations on Aroon, CMO and Demand Index and filter out the ones I want to watch...and keep these in favourites folder...and keep an eye on these...Aroon at 70 - 100 range is a trending phase of a security...so If we ask for a range say a week that Aroon must be in that range then we know that all these are in trending phase...tend to keep explorations simple and as long as it gets few ones to buy then I am happy...

Kagi is quite amazing....see how the price has reversed but is still green...saying it is on uptrend but watch...

Sometimes I just do trade on Kagi and 3 point reversal only with equal sucess...

regards

 

[esiotrot]

Hi Z

Thanks for the response.

You and I obviously think along the same lines, because I do something very similar.

I scan for 60 day high, Gap up with volume and Gap down with Vol.

Also scan for Dead and Golden Crosses.

I've never used AROON indicators so perhaps that should be on my "to do" list.

One of the best things about MS is to be able to scan with one click, through a whole list of stocks with one template, which can be pre-prepared or one you have just developed.

I forgot to mention that If you don't get on with Point and figure take a look at Renko. Brilliant for finding Support and Resistance although not so good for targets.

 

[zambuck]

Hi Peter

Indeed I scan the whole list including my own and explore using the same FTSE 350 list...84 explorations takes few minutes and it's there everyday...

Never tried Dead and golden crosses so will check it out....

Demand Index uses price and volume in it's use so it is often a leading indicator...so I use this along with volume...

I have used Renko as well...however sparingly...but must get around that soon...

Hopefully more Metastock users would like to join in the discussions and how they use MS and what are their settings etc..????
Aroon works best with 14 day...with trigger lines at 30 and 70...if you need to know more please let me know...