Pascal, What is Meant by "MF is positive"
Hi Pascal,
In the recent description posted on how the 20DMF is used, I see the statement: "the time to go long is when these three conditions are in force: there's a been a direction change in OB/OS signal AND the OB/OS level is between -70 and -90 AND MF is positive"
The main page 20DMF page say MF: -0.64% at the 11/28/11 close.
How is this all interpreted so that 20DMF is in a BUY going into today's open?
Thanks,
Shawn
What are the probabilities that we can't buy?
Pascal,
In your comment you say: "Furthermore, any pull-back will force us into cash again, since we are close to the -90 level which would trigger the fail safe mechanism."
As Adriano says:
[QUOTE=Adriano;18867]Billy/Pascal,
the IWM entry point is 1.50 % below yesterday's close ...[/QUOTE]
If IWM drops by 1.50% and independantly of the intraday move closes down by about this %, won't this trigger the fail safe?
PLEASE DELETE MY QUESTION. I just read Billy's comment and it clears up my question. Thank you
Pivot entries and LT vs. ST edges
[QUOTE=Billy;18866]Yes, limit buy order @68.74 valid for one day only.
Billy[/QUOTE]
I'm sure this has already been considered and tested, but it struck me to wonder whether the pivot-based 3:1 R/R entry points are maybe less important when the LT edge is strong? In other words, when ST edges dominate then we are probably more in a mean-reversion environment, and the pivot-based entries are crucial. However, maybe when LT edges dominate, it matters somewhat less that we find an entry price that is optimal for mean reversion, and don't want to miss a larger trend?
Just idly wondering,
-Mike