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Which are some of your favorite indicators you go by when considering buying a stock? I have used a number of them but would like others opinions on what they consider the best..
thanks
Posts: 741 | From: North Carolina | Registered: Feb 2006
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posted
Im doing some reading on RSI, when using this method you are generally waiting for the RSI to hit around 50? Does this show a time to buy or a time to sell? Also how accurate are the expected price levels? If you buy into a stock that is generally cheap, is it best to ride out the waves until it nears the expected peak? Again thanks for the education Joe
Posts: 10 | From: California | Registered: Jun 2007
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quote:Originally posted by GetPayed: Im doing some reading on RSI, when using this method you are generally waiting for the RSI to hit around 50? Does this show a time to buy or a time to sell? Also how accurate are the expected price levels? If you buy into a stock that is generally cheap, is it best to ride out the waves until it nears the expected peak? Again thanks for the education Joe
RSI is generally a indicator/oscillator that tells you when a stock has been overbought or oversold and whether you should perhaps consider getting out or getting in to a stock. But I don't really use it as such.
I use RSI 20 as Support and RSI 50 as Resistance. And I use RSI 50 as Support and RSI 80 as Resistance. Of course this depends on which side of RSI a stock is on. I don't buy anything below RSI 50 in general. Only if it's above. If it is below the 50 line and all of a sudden it breaks through the 50 line (Resistance) then I jump up and take notice & consider a Long position.
If your a person that likes to short Big Board stocks then you do the opposite. If a stock is above the 50 line and crashes through it (Support) then the 50 line is now Resistance and you can perhaps consider going short on it.
Anyways it's difficult to explain on a forum but I hope you understand what I am saying. Look at a few charts of stocks with profound patterns and not stocks with candlesticks all over the place like Microstocks have. For purposes of learning RSI 50 I would suggest you look at Big Board Stocks ($20 and over per share) candlestick charts with RSI below it since Big Boards aren't all over the place like micro's.See what a stock does as it approaches RSI 50. Does the 50 line act as Resistance or Support? Look at the RSI in the past few months for that stock. It's interesting how a stock (and the traders watching the chart of it) react when a stock approaches the 50 line.
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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fwiw you can look at NRGX and see how playing the RSI helped me for picking the top for when to get out. not an exact science but certainly helps. I was looking for right around 85 based on previous performance, there was a major spike during the run that was discounted (like a fat finger). This was trading on news and growth imo measured well by watching accumulation, money flow and the potential of risk I was willing to wait for was the RSI saying it was done. It may bounce around for a bit but imo should start to trend back down (without decent news). This was only 1 example and due to the lack of major volumes (would like to see over 1mm for a few days to sustain a decent run) I thought it to be a good strategy. You may also notice how other indicators turned down sharply also so just watching one indicator can be deadly dangerous. trying many different set ups to find out what works for you takes time. Picking a buy point and then a couple sell points to cover yourself and then let some ride to see just how close you can get to your goal works for me. make your plan and stick to it and be ready to run at the same time. lol.
-------------------- All post are my opinion. Do your own DD. Who's clicking your buy/sell button!? Posts: 7800 | From: Virginia | Registered: May 2006
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Indicators can be helpfull but remember one thing. The REAL price action is controlled by MM's on the trading floor and naked short action. This is especially true on the BB & Pinks. THE MM's WANT YOUR MONEY!!! Crunching numbers and staring at "candlesticks" is of limited use IMHO. Forget all the lame infomercials about how to read candles. It's all smoke and mirrors, bud. The MM's know you scour the charts expecting the price to move your way and they adjust their tactics accordingly to counter your expectations. It's as simple as that. I have found that placing my bets against the expected trend has produced far better results in the micro-cap market. Learn to think like a MM and ask yourself what YOU would do if you were trying to fool someone.
Posts: 669 | From: Gouldsboro, Pa. | Registered: May 2006
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Is that all you do Beech is to repeat the same post every few months? lol Just because they do not work for you does not mean they do not work for others.... i uses candlesticks successfully so please do not speak for me or others...
Posts: 4669 | Registered: Mar 2004
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In fact, nearly all of my big losers were due to jumping in without paying attention to indicators or holding beyond when incdicators suggested I should be getting out.
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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I guess the boyz in the boiler room are working overtime these days...lol Keep your candles thank you. My methodolgy works like a charm for micros. Whatever floats yer boat. As long as it works that's all that counts.
Posts: 669 | From: Gouldsboro, Pa. | Registered: May 2006
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