korzym
14 posts
msg #34732
- Ignore korzym |
1/3/2005 11:57:57 PM
To what extent should the RSI be relied on? before Christmas I made a watchlist very inefficiently, based solely on RSI and I had a few do well [+15%], and I use 7% stop losses, but then I move it up to 15%-20% and let the price dance above the tight stop losses to protect my profit. I just paid for membership a few hours ago and now have a bunch of sub-30 RSI(15) stocks at my disposal. What are they other indicators I should be using in conjunction with RSI? Would one be MACD?
My concern with RSI is that I noticed that even though it can get below 30, it isn't always the best time to take a position as there may be a further PPS decline.
Thanks,
Korzym
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Icculi
9 posts
msg #34740
- Ignore Icculi |
1/4/2005 6:19:16 PM
Well, try:
RSI(2) is below 1
Or for a few more picks something like:
RSI(2) is below 5
This should show stocks with short-term oversold conditions.
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korzym
14 posts
msg #34763
- Ignore korzym |
1/5/2005 7:46:47 PM
What kind of returns have you recieved using them? I came accross one stock that has RSI(2) at 0, LAVA, does anyone else see this as an excellent & safe opportunity?
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wallman
299 posts
msg #34764
- Ignore wallman |
1/5/2005 9:16:45 PM
a bottom RSI(2)dragger under 1 like LAVA has been the last 5 days is usually a great play ONCE the stock catches green and holds it,that's the catch,make sure it has a green hold,a minus to LAVA is that it usually doesn't have real great day range so the pop you get over a few days might not be as good as the ones you find like this that have historically nice dayrange
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korzym
14 posts
msg #34768
- Ignore korzym |
1/5/2005 10:43:06 PM
Thanks for the tips
Thats the problem I'm having, oversold RSI(15) stocks are easy to find but what are other{more} signs that point towards stabilization and an uptrend?
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TheRumpledOne
6,529 posts
msg #34769
- Ignore TheRumpledOne |
1/5/2005 11:19:14 PM
korzym....
Look for POSITIVE DIVERGENCE... in the case of rsi(2), that would be when a lower price makes a higher RSI(2).
Look at a 3 month chart showing RSI(2) for MANU.
On Jan 5, 2005 the price is lower than Jan 3 but the RSI(2) for Jan 5 is higher than it was on Jan 3.
When you see that it's time to LOAD THE BOAT!!
MAY ALL YOUR FILLS BE COMPLETE.
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korzym
14 posts
msg #34772
- Ignore korzym |
1/6/2005 2:11:55 AM
I own OVTI right now; I'll be here tomorow morning because I think I'm going to sell and buy MANU
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korzym
14 posts
msg #34777
- Ignore korzym |
1/6/2005 10:23:42 AM
What's the filter you used to find that one? I think I'll hold OVTI a few more days, looks like its bouncing back
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wallman
299 posts
msg #34781
- Ignore wallman |
1/6/2005 3:41:04 PM
Korzym, Great find on LAVA! it caught that green and is running big now,if you learn how to use RSI(2)it can be a huge advantage
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korzym
14 posts
msg #34787
- Ignore korzym |
1/6/2005 8:55:15 PM
I don't want to get ahead of myself, so what do you think of: VGZ, ARTX, SKIL, SWKS, and PUMP. PUMP is similar to LAVA because it's RSI(2) is also 0, RSI(15) is a little higher though: 21.6-compared to LAVA's 16.8.
This is the elementary filter that I ran to find those:
Show stocks where RSI(15) crossed below 30.00 within the last 8 days
and RSI(2) is below .7
and Average Volume(90) is above 50000
and close is between 1 and 15
I also ran LAVA through the stock screener which had it ranked as 61% bullish. So what are your thoughts on those stocks?
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