Registered User
Joined: 3/21/2006
Posts: 4,308
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I am not sure if this one is possible, but if it can be done then you are the man.. I am just wondering if you can design an indicator to actually find MACD-H divergence. the following example will show what I am looking for. It is LMRA. Back on 5/10/07 it was in an obvious positive divergence. The divergence was created because the Bears were losing momentum from 5/03 to 5/10 it was a more subtle and leaner sell off compared to 4/20 to 4/26 any way here is the example that I mentioned
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Registered User
Joined: 3/21/2006
Posts: 4,308
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In the next example it will demonstrate how the Bulls have taken controll. Let me know if you cannot do this, I know it was a mighty request..
Thanks.
Apsll..
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Registered User
Joined: 1/28/2005
Posts: 6,049
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If you are talking about price vs. MACD-H.
You can check out what I supplied here: (I guessed at a length of 10)
hohandy more macdh discussion.
The problem is you have to know the "length" ahead of time.
Smaller lengths will probably "catch" LMRA longer would miss it. Smaller lengths would probably give more noise. (false signals) So it is in the category of experimentation.
Thanks
diceman
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Registered User
Joined: 9/21/2005
Posts: 566
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Hey guys, take a look at what edu did today. It gave a Tobydad type montly return in a single day. For once, I spotted it before the move. Interesting though that I found it by accident just like ppd a while back. It didnt cross Diceman and was not a classic HNC set-up. You guys have any thoughts on other tools to catch set-ups like edu?
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Registered User
Joined: 1/28/2005
Posts: 6,049
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EDU is basically a counter trend trade. You are looking
at its weakness as a long trading opportunity.
(the trend will reassert itself)
It would all depend on your timeframes and how aggressive
you want to get. (exploiting its weakness)
Things like mavs (21 to 25) sloping upward. TSV positive.
(above zero) Would indicate a trend is under way.
Things like MACD-H below zero (12,26,9) would be an alert
to look for entry opportunities.
(with the idea weakness has been shown and the trend
should be changing soon)
Entry points could be defined by a downward sloping
trend line(of the highs) or MAXH3 (similar to tobydads
1 cent above the highs) or MACD-H first up bar when
negative.
Basically you are saying:
A) a positive trend is underway
B) weakness has been detected
C) I will look for any strength to
get on board.
(depending on how aggressive you want to be)
Thanks
diceman
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Registered User
Joined: 9/21/2005
Posts: 566
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Thanks Dice, good feedback. I like the MACD-H idea, think I will add that and do some more testing.
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Registered User
Joined: 12/21/2004
Posts: 902
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It's funny - EDU has been on my "to buy" list for the last 3-4 weeks - keeps coming in second and I end buying something else, but it's always there and at some point I *will* go in (and of course at that point it will be too late LOL)
One thing that I do believe in, and have made a lot of money on, is the IBD "Stocks on the Move" list that is showcased on their website every day - which is a fairly simple price/volume gain list. I keep that window up on my computer during the course of the day and just keep myself familiarized with which names show up repeatedly (we were talking about "momentum" on another thread - and to me the repeatedly making that IBD list is a sign of momentum) - and EDU is up there consistently. I do have a lot of trust in certain indicators, and I love looking at charts, but sometimes all I need for confidence is to see a name repeatedly on that IBD list and it's good enough for me - and EDU is one of those names without even considering anything else.
Good to see you talking it up, Jcfla7 - next spot opens up in my portfolio I'm gonna try and go in
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Registered User
Joined: 4/18/2005
Posts: 4,090
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jcfla7
Under the tutorial videos there is a video with instructions for a scan for this sort of thing.
EasyScan for stocks pulling back from an uptrend
also I have a tab that allos me to view it like this. Price is above the 100ma also above 50 ... up trend.. recently price steped back to the vacinity of the 20 ma and even between the 20 and 50 which for one of my strategies represents a "value zone" and is ripr for entry off either the high of the recent falling candles (like tobydads entry), or a candle buy signal that may for in that zone, engulfing white, white cloud, spring board polevault etc. what ever ones you know and like.
Hohandy ... I feel ya. I have skipped EDU twice now. But i'm also cautious because as an iPO it hasn't based yet... just IPO's and started cruising. It is begining a negative MS divergence and a minor TSV divergence... so any view I have tward EDU is short term... a few days to capture a little swing ...like today.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Thanks Diceman, I quess that I missed that thread. The Indicator was very helpfull.
I agree with Scott about EDU it is to new of a company, I stay away from IPO's. It does not fit the MACD-H re-test theory either, infact there is a negative divergence in the MACD-H. Price might be making new highs but MACD-H is not. Elder would not approve. 
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Registered User
Joined: 9/21/2005
Posts: 566
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Hohandy, thats interesting about IBD. How long you been using it? Do you think the scan that aspll referenced could replicate it or would it be specific to IBD?
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Registered User
Joined: 10/7/2004
Posts: 2,181
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One more way to catch these is with simple organized diligence. With a strong stock like this, and once it started its retreat on 5/10, just look at the highs. See the very orderly retreat, see each day's high lower than the preceding? So the evening of 5/10 or morning of 5/11 the conditional buy order or buy stop is 49.91, next day 49.43, next day 48.99, and so on until we achieve entry at 46.34 or thereabouts Monday morning.
Perfect time for the buy above descending highs technique. When I see strong stocks like this retreating with no exceptions to the descending highs, I find it just too inviting. Wish I had seen this one, it's perfect for 10% in 2 days.
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Registered User
Joined: 12/21/2004
Posts: 902
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Jcfla7 - the IBD list is a simple listing of up to maybe 20-25 stocks that are up in price and up in volume (with % change) from the previous day. It's not all-inclusive at all, and I suspect that it's probably just limited to stocks that score above a certain point in their own rankings (for example, MVL had an awesome day on Monday, and rose in both price and volume % terms higher than most stocks on their list). The list runs on a 20 minute delay and updates throughout the day.
The first couple of stocks on the list show up just on the regular IBD webpage - you need a subscription to see the full list). But I check it often, just to keep myself familiar with which stocks are "on the move". A stock I made a lot of money off the list was TNH - I had seen it repeatedly throughout Feb - then it disappeared from the list for awhile. One morning in early April I checked the list about 10:30 or so and it was there, having a big day - I correctly summized that it had had a pullback and consolidation and was moving again - and I rode it from 62 to 97. Right now I have SPAR off the list (up 38%) and just entered SYNL after it was on the list every day last week. Oh - and EDU was on the list again today 
I guess I've been referring to the list on a regular basis for about 5 years now. It's not the same as Apsll's talking about because it is solely price/volume - which anyone with TC2007 could also use for filtering - however, as I said, I'm pretty sure that stocks have to meet IBD's fundamental requirements to be eligible for the list
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Registered User
Joined: 9/21/2005
Posts: 566
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Interesting analysis Tobydad. That approach would have worked very well on edu on May trade but take a look at 4/30. Big sell off and nice recovery and would have been a good long. How would you have approached it as possible trade - or taken a pass?
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Registered User
Joined: 12/21/2004
Posts: 902
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QUOTE (tobydad) Perfect time for the buy above descending highs technique. When I see strong stocks like this retreating with no exceptions to the descending highs, I find it just too inviting. Wish I had seen this one, it's perfect for 10% in 2 days.
you might be interesting in IDC then, Tobydad - although it might be a day too late for you. I think the last 3-4 weeks are that chart have been slightly amazing
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Registered User
Joined: 9/21/2005
Posts: 566
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Thanks Hohandy, I have thought about IBD but have not yet signed up for it. Maybe I will give it a look.
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Registered User
Joined: 10/7/2004
Posts: 2,181
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jcfla7
Several issues on the question about 4/30:
1) I would have had much less confidence in the late April move as the price never made it back down to a supporting trendline; so I would have wanted to be very alert to all the signals after entry...sort of a feeling of just floating out there...don't like that. I take a very physical outlook on price movements, I imagine the stock needing something to push off of for upward movement...pushing off mid-air doesn't work too well except in Bugs Bunny and Roadrunner cartoons.
2) the low of 4/26 pierced the LR30, if you've read any of my posts on stops, you know that's one of the signals for me, so my stop would've been just below 45.42 (a penny below the low) and entry should have been around 46.83 (a penny above the high), so I'm only 3% at risk on that move
3) If you re-read my earlier post, you'll see that I said, "See the very orderly retreat, see each day's high lower than the preceding?" That didn't happen on the 4/23 thru 4/26 move. The descent was interrupted. That reduces my confidence dramatically.
These are all factors I've seen proven time and again. No, of course, no system is 100% in the markets, but this one, followed with discipline has been very good to me.
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Registered User
Joined: 10/7/2004
Posts: 2,181
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IDC may have broken out of its old channel and may be resting on its once-resistance-now-supporting trendline.
Looks like it might be a nice pick. I'm guessing it's going to consolidate until it can build some support at this level. Certainly one to watch.
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Registered User
Joined: 9/21/2005
Posts: 566
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Hey Tobydad,
Good feedback - useful information. Between you and Diceman and Apsll, a guy can learn a lot about stock trading on these message boards.
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