timwest

DOW INDUSTRIALS with percent over 200dma signals

INDEX:INDU   DOW Industrials [Test]
340 4 4
I am adding to Chris Moody's excellent chart he posted here today at Tradingview.

There appears to be a signal which can register here at the end of this week, once the weekly bar completes.

The BUY SIGNAL is when the DITH (%>200dma in Dow Industrials             ) pulls back from +80 to the +47 level.
Holding Period = # of bars since the highest high of the last 10-bars. Risk = 10 week highest high down to the entry price.

The SELL SIGNAL is when the DITH rises from the 20 level back up to the 47 level. Same holding period and risk measurements.

This is just my initial work upon seeing this fine chart that @ChrisMoody has shared with all of us.

Tim 12:14PM EST, Feb 5, 2014
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timwest PRO
2 years ago
The last little signal doesn't count because the indicator didn't drop from the +80 level. So scratch that one.
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Tim....Great analysis....I haven't introduced them here yet but I think with the new coding capabilities I can do it now. I create a line that plots a horizontal line based on a percentile function. Set it up following criteria of when market is in uptrend and downtrend...sometimes the levels are the same......sometimes not. What we will have the fortune of seeing soon, is does a blatant bearish divergence = reversal in market where the levels you've shown are taken out and then become sell opportunities, or does the pullback to the line you have marked on pane 2 = a rally for there. Then Bearish Divergence = likely pullback to buying opportunity,,,with a high enough probability to play both sides of the trade. Or no Bearish Divergence when 2nd pane falls to pink line = Buying opportunity, but Bearish Divergence = Trend Change... Other possibilities but enough for now. Be interesting to also plot Stocks above 50ma and see if there is a level that works well also since those are two most common averages used by institutions. Great work....It's a great example of how an experienced investor can take a look at a chart and by having the mindset of looking for reliable patters....eventually you know what to look for and it probably took you all of 1 minute to notice, and another minute or two to draw lines and verify. Nice analysis
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timwest PRO ChrisMoody
2 years ago
Thanks Chris - Good teamwork. I've been around the data for a few decades and can also just see patterns. Good teamwork. I like divergences, for sure, but it is a "fade the trend" trade and that takes, often times, more than a few tries to get it right because those trades have big profits, but a low probability of a profit. (That's my recollection from past trading experience and programming automated trading systems).
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Algokid PRO
2 years ago
Hi based on your chart , I will try to create a code based on this article http://www.advisorperspectives.com/dshort/guest/John-Carlucci-111128-Best-Indicator-Ever-Part1.php
I already created a char here a looong time ago ,see below.

Keep up the Good work guys

Algo
Best Stock Market Indicator Ever !!!
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