Comments on: Divergence Pays Off, and some DSM Targets http://dummyspots.com/2007/06/divergence-pays-off-and-some-dsm-targets/ Stocks, Options, Currencies and One Big Dummy Tue, 06 Jan 2009 04:17:08 +0000 http://wordpress.org/?v=2.2.1 By: LP http://dummyspots.com/2007/06/divergence-pays-off-and-some-dsm-targets/#comment-3093 LP Fri, 22 Jun 2007 14:21:52 +0000 http://dummyspots.com/2007/06/divergence-pays-off-and-some-dsm-targets/#comment-3093 Will, My 14 day project is coded named "Ground Hog's Day". It seems to be the same day over and over again. :) Good to see you back and build that yatch account. I'm looking forward to doing some deep sea fishing. LP Will,

My 14 day project is coded named “Ground Hog’s Day”. It seems to be the same day over and over again. :)

Good to see you back and build that yatch account. I’m looking forward to doing some deep sea fishing.

LP

]]> By: Will http://dummyspots.com/2007/06/divergence-pays-off-and-some-dsm-targets/#comment-3092 Will Fri, 22 Jun 2007 02:39:02 +0000 http://dummyspots.com/2007/06/divergence-pays-off-and-some-dsm-targets/#comment-3092 doc40 - Veddy intevesting stuff there. Please keep us informed on how it's going. I very much like the idea of a really fast RSI (like the 2-day) smoothed with a short moving average, and it's what I was working on at first. However, for my purposes (only taking long entries on the SPY) the straight RSI(4) gives me virtually the same signals (the levels are a little different), and it's easier to plot on platforms w/ varying levels of sophisitication (i.e. many of 'em suck!). Look forward to hearing more from you! LP - For the time being, at least, guess I'm like the "Highwayman" in that I'll be around, and around, and around. Good to hear from ya. And good luck with the 14-day project. Your determination is inspiring. doc40 - Veddy intevesting stuff there. Please keep us informed on how it’s going. I very much like the idea of a really fast RSI (like the 2-day) smoothed with a short moving average, and it’s what I was working on at first. However, for my purposes (only taking long entries on the SPY) the straight RSI(4) gives me virtually the same signals (the levels are a little different), and it’s easier to plot on platforms w/ varying levels of sophisitication (i.e. many of ‘em suck!). Look forward to hearing more from you!

LP - For the time being, at least, guess I’m like the “Highwayman” in that I’ll be around, and around, and around. Good to hear from ya. And good luck with the 14-day project. Your determination is inspiring.

]]> By: LP http://dummyspots.com/2007/06/divergence-pays-off-and-some-dsm-targets/#comment-3090 LP Thu, 21 Jun 2007 11:40:11 +0000 http://dummyspots.com/2007/06/divergence-pays-off-and-some-dsm-targets/#comment-3090 And you thought about quitting. I'm glad it's not a consuming thought. And you thought about quitting. I’m glad it’s not a consuming thought.

]]> By: doc40 http://dummyspots.com/2007/06/divergence-pays-off-and-some-dsm-targets/#comment-3089 doc40 Thu, 21 Jun 2007 05:06:26 +0000 http://dummyspots.com/2007/06/divergence-pays-off-and-some-dsm-targets/#comment-3089 Glad to see you're back and working with StrategyDesk. I too have been playing with the R2 method and started using it last week. I made a 3.5% profit (after commissions) on 11 of 14 stocks I bought early in the week and sold Fri or this Monday. My approach uses a 3-day period. To buy, I looked for RSI,2,D,2 to be less than 20 and RSI,2,D,1 to be above 20, same for RSI,2,D,1 and D,0, (R2 crossing up through 20) OR RSI,2 equal or less than 5 (sometimes a stock takes a nice dive). Since R2 alone can cause the buy to appear too soon in the down trend, I did a 2 day EMA for days 1 and 0, with yesterdays (1) EMA less than today’s (0). This ensures a turn up has occurred. To sell, I used a similar approach with the R2 going up through 90 and a 2 day EMA with day 1 about 1.2% below day 0, or greater. This catches a sell very close to the top and excludes those days when the stock is rising real fast. There are other things you have to watch out for, such as the trend, volume, price, the relationship to the 20 day MA, etc. but I like to keep it simple so I have to eyeball the chart very carefully. Glad to see you’re back and working with StrategyDesk. I too have been playing with the R2 method and started using it last week. I made a 3.5% profit (after commissions) on 11 of 14 stocks I bought early in the week and sold Fri or this Monday. My approach uses a 3-day period.

To buy, I looked for RSI,2,D,2 to be less than 20 and RSI,2,D,1 to be above 20, same for RSI,2,D,1 and D,0, (R2 crossing up through 20) OR RSI,2 equal or less than 5 (sometimes a stock takes a nice dive). Since R2 alone can cause the buy to appear too soon in the down trend, I did a 2 day EMA for days 1 and 0, with yesterdays (1) EMA less than today’s (0). This ensures a turn up has occurred.

To sell, I used a similar approach with the R2 going up through 90 and a 2 day EMA with day 1 about 1.2% below day 0, or
greater. This catches a sell very close to the top and excludes those days when the stock is rising real fast.

There are other things you have to watch out for, such as the trend, volume, price, the relationship to the 20 day MA, etc. but I like to keep it simple so I have to eyeball the chart very carefully.

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