mp6140

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considering its my native language, i dont do to well with it sometimes !

What follows pertains mostly to "swing" trading, but using the ts 5 alone will work wonderfully for daytraders also !

all it means is ive now replaced the timeseries 30 with three indicators with a value of (5) (9) and (15) AND i snuck in a ts 50 also. now im a sort of "overkill" kinda guy and while the time series 30 was good for showing rally continuations, they were a tad slow at showing when to EXPECT a rally.

the 5 and 9 and 15 will DEFINITELY show that a rally is in the making. under NORMAL conditions, where the stock has been dropping for more than a week, the 5 will be the first under, followed (usually) by the 9 the next day and the 15 a day after that. i like to wait for the 9 to confirm the 5, but if the 5 has dropped under a doji, at support in a downtrend, i will move immediately.

where the 5 becomes king is when a stock is rapidly moving up and down, in a week or less per move. then the 5 (5 trading days=1 week) may be the only timeseries to move under the pps before the move is over --- use it and youll see immediately what i mean !

where the 15 becomes impt is at the END of a rally. whereas the pps will fall BELOW the 5 and 9 at the top of a rally, it is the 15 that is boss here. in a swing trade, i will not exit until the 15 confirms the rally to be finished as there can often be false tops shown by the faster 5 and 9 (see below) Even better, if the 5 and 9 are on top of the pps AND the 15 is firmly BELOW, trust the 15 as things should start looking north very quickly !

i will personally guarantee that if the 9 has just dropped UNDER a days price candle (or bar) the stock will rally VERY shortly thereafter (if not immediately) 999 times out of a thousand --- maybe even better odds than those, as i have not yet seen it wrong !

the timeseries 50 simply serves (dont ask me how-- its NOT the same as a ma50) as a tremendous resistance point to a stock thats already rallying, and if the stock passes that indicator (timeseries 50 UNDER pps) then youve got a continuing rally up to the next heavy resistance point (usually the top LRC) on your hands !

for a very clear examination of the above, open a 6 month chart of INTC in the RSIWLR and look at the rally that started in mid june and ended in the last days of may, 2005. notice how the different values indicated the rally starting but pay particular attention to how the rally paused in the last week of june and "ranged" for the week, and how the 5 and 9 signaled the rally had ended BUT the 15 did not confirm that movement as being the top, continuing to remain under the pps ---- which proved to be absolutely correct, as the rally continued right along after the stock finished consolidating !

notice also the short rally at the end of both june and july, where the action was so rapidly moving up and down that the timeseries 5 was the ONLY one able to predict the next move up !

hope that clears up that mess !

trade well

mp

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As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence -- BUT I KNOW WHERE THEY HID THE KEY !!