trosen128
8 posts
msg #114273
- Ignore trosen128 |
6/30/2013 12:56:38 PM
Trading concept:
1. Find a stock that has had a recent pullback, and the RSI 14 is showing as oversold (under 30).
2. Add stock to your watchlist, and wait for a green day where THE VOLUME EXCEEDS THE PREVIOUS DAY'S VOLUME. This is the key concept, otherwise you might buy a "dead-cat" bounce and get stopped out with a loss.
ANYONE HAVE A FILTER???!!!
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Mactheriverrat
3,156 posts
msg #114276
- Ignore Mactheriverrat |
6/30/2013 2:01:31 PM
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Kevin_in_GA
4,599 posts
msg #114279
- Ignore Kevin_in_GA |
6/30/2013 5:35:29 PM
Trading concept:
1. Find a stock that has had a recent pullback, and the RSI 14 is showing as oversold (under 30).
2. Add stock to your watchlist, and wait for a green day where THE VOLUME EXCEEDS THE PREVIOUS DAY'S VOLUME. This is the key concept, otherwise you might buy a "dead-cat" bounce and get stopped out with a loss.
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1. Define "recent pullback" - you have not done this yet.
2. Define what timeframe and absolute RSI() value you want - here you have done this but how do you know that it is optimal?
3. Define "wait for a green day" - I would assume that this would be "the next day" since the previous criteria would still be in effect.
4. Is there an amount by which the volume must exceed the previous day's volume?
5. Define an exit strategy - so far all you have done is to suggest a possible entry. That's only half of the system, and it is the half that creates the risk, not the reward.
You also write "otherwise you might buy a "dead-cat" bounce and get stopped out with a loss." so I am assuming that there is a stop loss in place?
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