pratbh said:Where do you guys place your initial stop? Chick decides to exits purely on the basis of the line patterns. If the lines turn against him, he gets out. The problem is you then don't know how much you are risking before you enter the trade, which makes me uncomfortable. I was thinking of placing a stop 2 or 3ATR away. But the problem is the price might trigger that stop off, without the line patterns going against you. So you should have stayed put, but you are out.
Hmmm....tricky tricky...
Bigbusiness said:Had a buy signal on my Dow chart at the close yesterday. I am going to miss this one, as I don't want a long term position at the moment. I would probably wait for a pull-back if I was going to buy but I have missed the last two trading opportunities doing that.
og5 said:Thanks Kiwi, I tried and got the same on prophet charts. What platforms are you guys using to match Chick's indicators? I guess I will need either an MACD that uses SMAs or another indicator that does the SL and ML individually (10 day SMA - 3 day SMA and 16 day avg)
i can see djia hitting 60+ todayBigbusiness said:I have only had the book for 6 months, so haven't had a lot of time to observe the best place to put stops but for the Dow, a 150 point stop from the initial entry point seems to be working well at the moment. I did check a few years back and it works OK as long as the volatility is not too high. I missed the last sell signal, as I thought there might be a bit of a pull-back and I could get a better entry. That didn't happen and there has been a 600 point move down with no buy signals. One of these days I will get it right
The attached chart shows some recent entry points and the red lines are roughly at the 150 points stop level.
og5 said:Does anyone have a custom indicator for Amibroker which uses chick's lines (MACD with SMAs)
EDIT found what I was looking for, thanks