Reader James H requested the chart for United States Steel Corporation (NYSE: X), and so I made a note to post it tomorrow. But, I’m having too much fun showing these off.
Anyway, with that said, here’s how our ultra-simple criteria worked: It was five trades on X, with 4 wins and 1 loss, and a net gain of $2.05 per share. Not bad at all! It’s too bad there wasn’t a clear push off of the moving averages around 13:44.. because that would have been a nice ride up. Still, I want to stick to crystal-clear criteria and only trade very clear entries. Otherwise, people come up from the woodwork accusing you of ripping people off…
new rule: and don’t worry… I’ve checked all the charts I’ve posted so far to make sure I’m consistent. In this chart we had a case where a loss blew right past the previous swing high, and the moving averages, and the paintbar changed color against us, while the volume pressure was still on our side. In a case like that, I’m going to take the loss. Which is the most important factor? Not sure yet… this case doesn’t happen often and I’d need to see it happen on more stocks before I can tie down exactly what the mechanical criteria would be. But, to me, clearly this was a case where the trade was not working, and any sensible trader would take the loss.
So, work with me on this one… Let’s make the tentative criteria: if it crosses the moving average, and the paintbar changes color, go ahead and get out.
As always, feel free to post stocks you’d like to see… this really will die down to one a day, soon… I’m just too thrilled right now with what I’m able to show you. I didn’t even do any research… I just threw the paintbars and averages I’ve been using on @ES up, and it seems to be fantastic so far.
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August 22nd, 2008 at 12:40 am
Very nice, thanks for the quick response, I’m sure that I will be subscribing to your indicators soon =).