| nuggetone |
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Gold User, Member, Platinum User, TeleChart
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| Registered User |
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| Unsure |
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| Sunday, October 2, 2005 |
| Monday, February 20, 2006 5:45:46 PM |
2
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QUOTE (nuggetone) It seems reasonable to assume (I'm new at this, and only paper trading, so far) that any given stocks personality will have the following two facets:
Make that at least the following two facets.
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QUOTE (TreeShaker) Let me see if I understand this correctly. It seems to me that you try different parameters on a stock and see how the stock looks in it. If it looks good wearing that parameter, you assume that the character of the stock will remain the same and continue to use the parameters to get future readings.
That's not how I interpreted his statements. I think he meant to study the chart until you recognize patterns in the way the indicator behaves with respect to price. I don't think any of his statements implied assuming the stock won't change personality. It seems reasonable to assume (I'm new at this, and only paper trading, so far) that any given stocks personality will have the following two facets: Personality associated with 1)market cap, # outstanding shares, price, industry, sector, etc. 2)behavior of the price when viewed over time on a chart. For example, I'd guess that, as MSFT changes personality over, say, a 2 year period, an indicator that worked in the late 80's might no longer work today.
Now, when you say, 'looks good wearing that parameter', do you just mean that both price and indicator are bullish today, or do you mean it looks good because the indicator consistently exhibits recognizable patterns that have, throughout its history, predicted certain price behavior? I think PW meant the latter; I think I liked this thread; and I hope I figure this stuff out. :)
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