Steve Why did you decide to go long after you said we were at the top of a I1 cycle with out a buy or sell signal just last week? You had said that we did not start a new wave up just becouse we got to dow 10908. Did i miss something here.
Hi Jack, I went long initially 3/29 pre-open in ARCA based on futures criteria in prior Friday's posts. Increased today pre-open in ARCA based on futures criteria posted Monday. The reason why I am allowed to go long in advancing I1 without a formal buy signal relate to the rule set as laid out in Intro and Concepts: 3) In the absence of buy and sell signals the tactical rules are: a) I1 uptrend, OK to buy small at I1 bottom, but must wait for .3% upside break of 15-min, 54-unit M/A before buying more. Cannot short until 1.2% downside break of 5-min, 380 unit M/A. b) I1 downtrend, OK to short small at I1 top, but must wait for .3% downside break of 15-min, 54-unit M/A before shorting more. Cannot go long until 1.2% upside break of 5-min, 380-unit M/A.
Jack, reactions to the DJI 5-minute, 380-unit M/A (basically the 5-day M/A) are integral to my entry points as well. With the I1 uptrending I have found that rarely is this critical support broken and I have much more confidence buying at this M/A. This is why I bought today to add to the position.
If the rule set is confusing please advise and I will try to clarify it in Intro and Concepts.
Steve
ReplyDeleteWhy did you decide to go long after you said we were at the top of a I1 cycle with out a buy or sell signal just last week? You had said that we did not start a new wave up just becouse we got to dow 10908. Did i miss something here.
Hi Jack,
ReplyDeleteI went long initially 3/29 pre-open in ARCA based on futures criteria in prior Friday's posts. Increased today pre-open in ARCA based on futures criteria posted Monday. The reason why I am allowed to go long in advancing I1 without a formal buy signal relate to the rule set as laid out in Intro and Concepts:
3) In the absence of buy and sell signals the tactical rules are:
a) I1 uptrend, OK to buy small at I1 bottom, but must wait for .3% upside break of 15-min, 54-unit M/A before buying more. Cannot short until 1.2% downside break of 5-min, 380 unit M/A.
b) I1 downtrend, OK to short small at I1 top, but must wait for .3% downside break of 15-min, 54-unit M/A before shorting more. Cannot go long until 1.2% upside break of 5-min, 380-unit M/A.
Jack, reactions to the DJI 5-minute, 380-unit M/A (basically the 5-day M/A) are integral to my entry points as well. With the I1 uptrending I have found that rarely is this critical support broken and I have much more confidence buying at this M/A. This is why I bought today to add to the position.
If the rule set is confusing please advise and I will try to clarify it in Intro and Concepts.