Wednesday, May 20, 2009

Triangles - update

In the spirit of keeping things simple, let's see how the Market Club Trade Triangles have fared over the past six months.


I like the Weekly signals for position trading and as the chart above indicates, the S&P 500 is currently on a BUY from a signal on Match 18, 2009 at 780.12. The Monthly BUY didn't kick in until May 4 at about 888, which is a perfect example of why I like the Weekly Triangles with this system.

Note also the SELL in early January at 857, culminating in a 77 point gain with the March BUY.

Below is the same chart, but with Weekly instead of Daily bars.


Based in this week's bar, a Weekly SELL signal will be generated on any print below 880 on the S&P.

Simple, elegant and inexpensive.


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4 comments:

Anonymous said...

if we're talking 3-week low then it's actually the 847.12 low that would trigger the weekly sell, right? At least unless Friday closes above that, then 879.12 becomes the new trigger.

Anonymous said...

Triangles, triangles....
What do they mean? I am a subscriber and I was curious about their stock ranking +100, -100, etc.
Basically when you get all 3 time periods(daily, weekly, monthly) in sync you have a higher plus number. One might infer that the higher the number the better the stock, the better the return. But the Market Club people don't say that. At least the person to whom I spoke. This person said it defines the strength of the trend. When I posed my question as to whether there were data supporting the fact that the stronger the (up)trend, for example, the better the results, she answered no. So if buying or selling a trend does not yield the results anticipated, what good is the info and why would you care what the trend is?

Allan said...

The triangles are part of a rule-based trading system. The strength of trend considerations are fluff. Find something that works, then use it.

Allan said...

Re: Weekly Sell signal

My bad, you're right, 879.12 is the trigger as of next week, while 847.12 is the trigger for remainder of this week.