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By definition if you have a trending market/security "RSI" or Stoch"
or any type of oscillator based indicator is NOT supposed to work. This is from
TA bible. Beleive me it is correct, I can speak from experience. One of the
toughest analysis in doing TA analysis is to determine which type of indicator
to use in trending market or non-trending market.
Regards,
M.Ayalew
> Resent-Date: Fri, 29 Aug 1997 14:28:02 -0600
> To: metastock-list@xxxxxxxxxxxxx
> Subject: Re: APEX again
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> On Fri, 29 Aug 1997 13:23:06 -0400, you wrote:
> >I don't like to use RSI and Stochastics when a stock is clearly
> >in a trend. It never seems to work. The fundamentals of APEX
> >are very good. Check IBD for ranking. It has an EPS rank of
> >99 and a price performance rating of 99. It is currently being
> >accumulated and is in a very strong group. Do you think the lower
> >price to buy will beat the thirty I recommended?
>
> Not at all. I think 30 is a great price for this stock. The trouble
> is, if you buy today you will pay 40. I think that if you wait you
> might get it for 33-35.
>
> As for RSI and Stoch not working on stocks that are clearly in a
> trend, I beg to differ. Take a look at my chart of IOM
> http://www.white-crane.com/iom.htm. Notice how the Stoch(9) has given
> a buy signal at the end of every single month since March. And every
> one of them was a good time to buy.
>
> I do have a problem with RSI. When a stock is on an uptrend, the
> usual rule about 80/20 lines does not work at all, since the RSI will
> rarely fall below 20.
>
>
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