Knowledge

[cotton]

Hi everyone are we making a profit?

I need some answers to help me on my way,

A trading cycle is 20 days I believe, could someone tell me what day it is (please not Tuesday)

And for my search tonight I'm am using RSI, Stochastics, M.A. as my indicators.

And price chart will be as suggested Opposite tick

Any time frame or settings I would be grateful

It has been suggested too I click on the right hand corner and go one frame at a time.

Cheers

Cotton

 

[JTrader]

??

 

[Grey1]

A cycle is 20 days ?

Well this is the most important question to answer.. If we knew the cycle period then all our TA indicators would work all the time and there would not be a loser in the market ..

Historical evidence suggests market DOES go through cycles and the ultimate challenge for traders would be to find that DOMINANT cycle to bet upon and win ..

This guy called brassert has done a lot of work on identifying the cycle period and his work is well known .. Unfortunately , he is trying to make money from his seminars than the market..

PS:-- TA indicators' settings are derived by two means

1) Technical . by calculating the Cycles
2) Statistical .. by calculating the dispersions ( the extreme dispersion of a price in stock X should not exceed by Y amount .. so if it does then the stock X is Over bought or Oversold )

 

[cotton]

hi Grey1

I may have found an answer to the cycle:

what I'm about to write are someone else's views

I'm not trying to influence anyones trading strategy in any way.

(BULL MARKET)

Todays range must be bigger than the previous 10 days

RSI above the mid line

want stock that has hit a new one month high today (DAY1)
highest price in the last 20 Days

buy tomorrow at 3/16th above today's high

Cotton

anyone using this method pleasr let me know,
I plan to try it myself next week

 

[ZigZag]

Cotton:.....Ensure that your implied definition of a cycle is correct. The method you have indicated has nothing to do with cycles but a trend breakout system. It sounds very similar to the famous "turtle system" which was extremely successful in the 90s bull market. However it eventually failed after 2000. Like your method it started at 20 days but it was then refined to 14 days. The system also had a stop loss. If my memory serves me correctly it was a 5 day period. No other indicators were used. Good luck in your research. P.S. There was also a money management input which was 50% of the sytems success.

 

[cotton]

ZigZag,

Thanks for your input,
The year 2000 (alot of strategy's, traders failed) a shock to most.

Thats history,

I do like the idea of finding Volatility and Breakouts.

Just got to device a strategy to help me find these stocks

onward with research.

Cotton