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Trading on breadth - Adv/Dec NHNL McClellanSumInd
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lorong8
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24-Oct-2011 15:05
Yells: "cimtr_wordpress_com" |
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Hello, This is a good trading environment to go in now. Low risk...for me. Hopefully wont gap down after deepavali... (euro summit...) Those in the email, this is a slightly different version :p Below is the STI chart, weekly. I use breadth data to help gauge the market condition. Correspondingly, the weekly oscillating indicators can also help you do a rough gauge. According to Elder's Triple Screen and Impulse system, the macdH ticks up, its blue or green...go ahead to enter long positions. [IMG]http://i53.tinypic.com/zumcdt.png[/IMG] You can see the market has a high chance of rallying higher when both the stochastic n macdH are swinging up from oversold regions. So when the STI is swinging up...most stocks will follow suit. This is especially true when the MA is ticking up. This also means low risk entry period for you. This is not a buy low sell high, or chart pattern/candlestick style of trading...more like a market momentum type. Buy at the right price, at the right time. There is no profit target...just ride as long as the market allows. Jesse Livermore mentioned there is a few times a year that is tradeable, ie, when the general market condition is good. A time to trade, a time to go fishing :) Stop loss and position sizing can be based on your own preference. Based on chart pattern, the next support level, pivot points, the prev minor low, and for me, I prefer volatility based stops. Position sizing for me is calculated this way. I have a maximun tolerated loss of lets say $500.00/counter. (I would strongly recommend to be between 0.5-1% of your total trading capital, and the total money at risk at any one time to be no more than 20% of trading capital. You will need to gain 25% to claw back a 20% loss...) For the 1st trade, max loss per share = entry - stop = 3035.52 - 2982.10 = 53.42 Units to buy = 500/53.42 = 9.36units Below is a simple backtest result based on a simple advance decline indicator and using STI index as a test counter. [IMG]http://i53.tinypic.com/30u5wmd.png[/IMG] This is a replica of my post with singstocks.com |
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lorong8
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13-Jul-2011 14:35
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hello all, There is going to be stop limit & stop market orders for sgx listed stocks soon :) to be introduced in about 2mths time:) so those who like to " stop in" or " Stop out" for their entries and exits for cust loss or profit taking should be happy, haha! |
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lorong8
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23-May-2011 00:03
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Hi, Anyone here uses breadth data like advance decline, new high new low or the mcclellan summation index for their trading and measuring market condition here? |
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