IYB's Seven, great indicator work Options

[OEXCHAOS]

[traderpaul]

They are great indicators but I think we can improve on them.

Does anyone remember the original Wall Street ELF Indicators?

They were 1/3 Fed indicator, 1/3 sentiment and 1/3 breath.

[teki]

The trinq chart has another buy signal crossover as of the close today.

[frenchpj]

traderpaul

Check out The Encyclopedia of Technical Market Indicators, 2nd Ed., by Robert W. Colby, pages 784-788. Too much info to present here.

[Mr Dev]

Imho
Having a sigle indicator set as a 6MA on the namo nymo nahl and the nyhl charts is incomplete,

and maybe equal to missing a turbo-charger on a diesel engine.

Being incomplete means it will tend to lag the big moves in both directions leaving

us with much smaller profits in the middle.

In what looks like it could be a sideways to dn market, and possibly for some extended time,

the 6 Ma setting may not cost us more than it gives us, but does leave us with less margin for error.

This unnecessary lag in turn may let us out only slightly better than even on many trades, esp when risking any counter trend trades.

Mr Dev

[Mr Dev]

Just shring a Tuned version for those that are reeeally interested.
You may notice a full day advance notice on the very same signals.
Now how many times have we all said ....'If I was only in/out.....yesterday'!
best

[img]http://stockcharts.com/def/servlet/SharpChartv05.ServletDriver?chart=$NAMO,uu[r,a]dhclyyay[db][pb3][vc60][iuaL7,18,9!ld10!lo10!lh14,3][J21450591,Y].png[/img]

[img]http://stockcharts.com/def/servlet/SharpChartv05.ServletDriver?chart=$NAMO,uu[r,a]dhclyyay[db][pb3][vc60][iaL!l!lo10!lh14,3][J21450591,Y].png[/img]

[frenchpj]

Mr. Dev

I like your idea.

One more suggestion is to analyze the indicator with Bollinger Bands. I find they give better signals than predefinged set levels. Give it a shot!

GL

[Mr Dev]

Thanks frenchpj I will and look forward to sharing some results!

[traderpaul]

Hi Don, This may be window dressing... Look at key stocks : CSCO, GOOG, EBAY, INTC, MSFT etc. You will find last minute (they waited until just before the bell) buying on all of them.....

[Rogerdodger]

Here is the general rule that I use (always though keeping the context of the market firmly in mind):

When 7 of 7 say "buy", that marks the beginning of an uptrend, which remains in effect until 7 of 7 say "sell", which in turn marks the beginning of a downtrend until 7 of 7 say "buy", which marks the beginning of an uptrend, until....ad infinitum.

Now the specfic buy/sell points on the seven:

For (each) TRIN and TRINQ: Buy when 3 EMA is below the 13 EMA, sell when 3 EMA above 13 EMA. {I dropped the "lock and load" rule in favor of my overall goal of KISS ("keep it simple stupid")}

For $BPCOMPQ, when reading drops either from above bolinger bands, into same, OR from within BB's to below same...that is a sell signal. Buy signal is a crossing from below into bands, or from within to above bands.

For NAMO, NYMO, NAHL, and NYHL, if the reading is below the 6 DMA, thats a sell, and if its above, that's a buy.

I could say a whole lot more about always keeping context in clear perspective when interpreting the SS's, but I won't. For now we'll just KISS.