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wallman
299 posts
msg #49169
- Ignore wallman

1/12/2007 7:26:30 AM

I'll start a new thread here because the discussion i'm replying to regards Corsino's reply regarding RSI(2)and the original poster is asking about RSI(2)so they can keep it on topic there.
But I have to reply to this and it involves the Fast%k(14) below 10.

"I see no reason why it has to be RSI(2)<1. It could be RSI(2)< 0.5 or any number less than 1 if you wish to reduce the number of stocks. Also, lowering the number may improve the results."

Corsino,you have to understand I've been trading realtime the RSI(2)for a few years now after being told about it by TRO.So I believe I know the ins and outs of it very well.
Reducing the RSI(2) to below 0.5 is throwing tons of winners out that are between 0.50 and 1
In fact using RSI(2)only below 1 is also throwing tons out also.
This is no disrespect to TRO.He and I are very good friends and he knows how I feel about this.

My belief is the Fastk14 below 10 catches way more big gainers than using RSI(2).
Look at this filter:

Use the 3 day offset here and you see 7 double digit gainers TELK LNX FMDAD (93%) DSTI (33%) JAVO FICC
Only FICC was under 0.50 and TELK at RSI(2)50 LNX 2 FMDAD 1.50 DSTI 1.19 were over RSI(2)1

Muddy

TheRumpledOne
6,371 posts
msg #49173
- Ignore TheRumpledOne

1/12/2007 9:05:56 AM

Just remember that StockHolyGrail is the one who taught me RSI(2) < 1. Credit goes to him for that indicator setting. I just created the filters.

Trading's not about indicators or filters - it's about making money.

A trader must find and do WHAT WORKS for them.

sadelb
12 posts
msg #49200
- Ignore sadelb

1/12/2007 8:17:47 PM

This filter looks great but what do you look for in the chart to determine what stocks to buy. Could somebody help me out with chart settings to find the right stocks to buy when they show up. Also, what is the best stock chart website to use to set the settings. I remember TRO had a great thread about the settings on prophet.net for RSI(2) < 1. Thanks in advance.

Ben

corsino
259 posts
msg #49208
- Ignore corsino

1/12/2007 10:08:50 PM

My suggestion to lower the Rsi(2) was in response to a question on how to reduce the number of stocks from a RSI(2) scan.Obviously, any reduction of the list, by adding more criteria to the filter is going to throw out some potential winners.Who knows for certain which are going to be winners? Not I.

corsino
259 posts
msg #49209
- Ignore corsino

1/12/2007 10:15:40 PM

I should add that MARY4MONEY some time ago suggested lowering RSI(2) to 0.1, and backtests, FWIW,seem to indicate that results do improve with lower RSI(2).

corsino
259 posts
msg #49210
- Ignore corsino

1/12/2007 10:35:32 PM

Wallman
I'm not detracting from your fast %K filter. It is a great filter. In fact, stochastics is probably my favorite indicator, although I may use differement parameters.

slotmarket
59 posts
msg #49212
- Ignore slotmarket

1/12/2007 11:21:46 PM

Muddy,

Your filter generated 46 stocks three days ago. How does one keep an eye on all 46 so to catch the 6 double digit gainers? Do you have a method to narrow down the number? You're so talented you probably did watch all 46 and caught the big gainers. The rest of us mere mortals are not quite as talented as you. But I'm very willing to learn, so, impart some wisdom here, please.

corsino
259 posts
msg #49216
- Ignore corsino

1/13/2007 12:09:03 AM

Wallman
I know you have generated several filters, all great. Do you consider this filter your best? If not, which one ?

wallman
299 posts
msg #49219
- Ignore wallman

1/13/2007 1:06:00 AM

"My suggestion to lower the Rsi(2) was in response to a question on how to reduce the number of stocks from a RSI(2) scan"

"Your filter generated 46 stocks three days ago. How does one keep an eye on all 46 so to catch the 6 double digit gainers? Do you have a method to narrow down the number?"

As with any filter I believe if you want to narrow the list down to a workable number for you,you should add "average volume(90)is 200,000" and keep bumping up the average volume until you have the desired number of matches you wish.

Corsino,
This is why I use the fast%k<10 as a "bottom fisher" filter instead of RSI(2)below whatever.

TELK - Telik, Inc. 5.48 9.16 3735600 97.97 9.24 -0.00 +10.40%
You'll see here RSI(2)was 97.97 and Williams%R(10) was the highest value possible, -0.00,yet because fast%k was under 10 it hit this filter. I love any bottom fisher filter that can give me a RSI(2)of 98!!
And also TELK could have been caught at the near start of it's run:

TELK - Telik, Inc. 4.57 2.01 1671400 50.17 1.94 -97.93 +32.3
TELK was a 50 RSI(2) that day,the 2nd highest on a list of 54, BUT a very low fast%k at 1.94
Now this tells me that when one like this shows a "good" RSI2 and a low fastk14,it has plenty of room to run once it turns GREEN.

I don't use RSI(2)below 1 much anymore because my filter picks up many of the same ones from the rsi(2)below 1 but does not pick up ones like this:

FMDAD - Futuremedia Public ... 1.60 -4.76 591100 1.52 7.20 -92.80 +80.00%
FMDAD had a RSI(2)1.52 so would have been missed,plus it had a good fast%k of 7.20 compared to the low RSI(2) reading.This "divergence" setup is explained in detail in the Public Filters Forum.

One note here while I'm blabbing
FMDAD was already on my radar because it had just changed symbols in the few days prior.
I've said this many times,these recent symbol changes can give a powerful move in upcoming days.
Witness CPSL that changed symbols 12/29 from OLAB which was already on my watch list for that day.
From the blog:

Friday, December 29, 2006
OLAB

Symbol below in watches OLAB is now CPSL

Entering under 11 here again for hopeful run back

Posted by Muddy

CPSL opened at 5.45 and hit a hod of 13.73!
Needless to say we had alot of happy folks in the chat that day.

wallman
299 posts
msg #49220
- Ignore wallman

1/13/2007 1:24:11 AM

"I know you have generated several filters, all great. Do you consider this filter your best? If not, which one ?"

The fast%k for it's value for swing trades by far.

The squeeze/volume increase/price breakout (sq/vol/br)for the way it gives awesome "3 play" setups.
From the sq/vol/br filter you get:
Flag pattern setups,UBB Zone (ema13/sma20 or ema5 if you wish) pullbacks,and MOMO ON GREEN.

And I have to add the NO FILTER.
For daytrading and occasional overnight holds for the gap up on open for those who can watch during trading hours.
The scrolling HOD list WITH vol % increase.

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