Chart of EMA of 2 stocks

markd

As I understand it, the set up on the weekly chart is, RSI x 40 when RSI > EMA, or RSI x EMA if RSI x 40 within the previous 2 bars.

If that's the case, then it appears from your chart there was no signal April 2020, because RSI never went below 40 in March of 2020 (blue dash line). The other signals look valid however and it is a good gainer stock (although I see what would be for me some hairy draw downs).

Also, at what point would this stock show up in your scans ? I would guess not at the first two or three signals. So when they do show up, would you look back to see if your signal had worked and use that as factor in your entry decision (i.e. if the signal hadn't worked, the symbol would be dropped)?

Are your appreciation per cents bases on Jan 1 close to Dec 31 close, or entry to best close, or something else?

candidcactus

When I'm looking to see if an indicator I'm investigating seems to be predictive ("works"), I use the inspect tool to check it out. If it looks promising, I'll put in the lines to watch much more closely, and to see how it interacts with other indicators. In this case I used it for demonstration purposes.

FWIW, I regret the tone I used in that demonstration, and the almost sense of bravado. I got excited as I looked at that chart, and I pretended to take on the role of a teacher as opposed to a sharer. I guess there can be significant overlap there, but being a teacher creates more separation.

Also I'd have liked to described how I discovered it. That could be helpful in describing how just looking at (investigating) charts can lead to discoveries. I put moving averages on almost everything I chart. Experiment with different averages and try to come up with one that is most useful. That can at least give you an additional perspective on what is going on, plus the option of seeing if crossovers are predictive, and to what extent. On RSI, for a long time I was using 2 different moving averages, which certainly added to indecision when one crossed over and the other didn't. I ended up choosing something between them. The crossovers were a decent signal, but not close enough on their own. Just staring at a chart one time I noticed that there seemed to be a lot of reversals off the 40 line, and many of them were relatively long term. This became a helpful indicator, but no more than 70% of the time (an estimate). Later I noticed that frequently the EMA crossover occurred on the same bar as EMA bounce. It didn't take too much investigation from there.

Oh, incidentally - this indicator doesn't work if you use any color but blue! I'm not even sure if it's accurate to call it an indicator. It's a chart pattern. I guess that really, what I use is chart patterns, many of which I'd never find without an indicator.

And oh yeah. I remember my sixties. Enjoy them while they last.

While I'm on topic about some of what I do - for every industry group I have perfcharts for every stock in that group >$4. Most industry groups have more than 1 chart. Banks seem to have the most. I also have chartlists for every industry group, also >$4. When I investigate those charts I have to make customizations on some of the indicators, and may at times have notes.
Below is a screen shot of primary ThinkorSwim screen. The large middle section probably can be filled with over 50 different screens. I use maybe 10, primarily 4. Each of the watch lists on the left, opened fully, could fill at least most of the column. I primarily look at the top 3, and futures if I'm here pre-market.
It's nice to be able to look at weekly, daily, and 5 minute charts at the same time. Unfortunately, any customizations you do to a study or indicator have to be applied to all charts in the same time frame.

markd

This isn't a TOS forum, (and you may already know this) but I believe you can save study sets (a collection of all the indicators on the chart at the moment) under different names and apply them separately to the same chart or different charts. So, you would set up a selection of indicators, right click on the chart, select Studies, select Save study set, give it name. Then when you want to apply a saved study set, right click on the chart again and select Load study set. So you could rotate through several combinations of indicators by selecting and loading different study sets.

lmkwin

On TOS you also have the Reverse Engineered RSI option available. This plots a line on the price chart at the price where the level of RSI would be based on the current prices and movements.

That's a fun one for those RSI inclined.

RSICrossover will put an Up or Down arrow on the price chart when the selected RSI value is crossed.

Neither of these are available on SharpCharts, nor in ACP at the moment.

Did you ever get the Chart the EMA of stocks to work for you?

candidcactus

My first reaction was what is TOS. Then I realized.

markd: I apologize. I was trying to describe how I trade (I assumed that's what I was encouraged to do and am trying to be at least moderately comprehensive), and the frequent value and perspective that simultaneous view of 3 charts can provide. It wasn't that I was trying to show anything about TOS as much as a screen layout that I find useful; and that something similar is probably available on many trading platforms or elsewhere on StockCharts. I also have 3 time frames on my TradeStation screen as well. That was intended to be my only reference to ThinkorSwim since trading decisions are very rarely made using it.

lmkwin: Thanks. I will very definitely look into that.

markd

@candidcactus - I wasn't chastising you for including a TOS screen. I wanted to respond to your comment about
"any customizations you do to a study or indicator have to be applied to all charts in the same time frame" without implying (to others) that TOS could become a topic on its own inside a Stockcharts forum. I don't want things to go that way. But I did want to advise you, if you didn't know about them already, that you can use study sets to avoid the problem you indentified. Maybe I should have addressed that to you in a private message.

lmkwin

I mentioned my apology about hijacking this thread as it morphed from a question about putting indicators on charts to trading strategies or methods. That's a different area of this forum. I do apologize again.

I do like the study sets on TOS. On StockCharts you'd have to save them as different chartstyles to apply against a symbol. I tend to get bored with indicators. However, I think I'm going to create a divergence scan and do some backtesting. I heard from a couple StockCharts authors recently that divergences are the cats meow.

candidcactus

I have the various useful EMA numbers saved on the left, and just click until I find the right one. Sometimes I have to fine adjust, but not often. I have EMA's of 3 & 6, 5 and 10, 7 and 14, 10 and 20, 15 and 30.



Oh, I have 3 screens on ToS and TradeStaion as well.

PeterPan8

Wow! That's a great discussion guys, and very polite! What a change from YouTubers braggers 😁
Candidcactus: How do you use the above EMAs? The xOver, Trendlines, or others?

candidcactus

Wow. I haven't been here for awhile and see the postings have been very heavily edited or deleted. Quite possibly a good idea. Anyway, I am having trouble with scans. I am shorting these dayhs, and have used variations of this scan regularly.

candidcactus

I'm having trouble with a scan that I think I have been using variations of for over a year. A shorting version. Hope the link below shows.



What is wrong with this?
Oops. I see the problem. Sorry for my [negligence. Becoming old and senile

candidcactus

).m having difficulties here. Unable to edit my post (52 minutes remaining.) I thought I saw initial square rackets missing, but now they are there. I cannot remove that last line, and still do not see what is wrong with scan lines 34 and 35.

markd

On lines 34 and 35, you don't need the left parens in front of RSI(13). Try it this way:

and [weekly RSI(13) < weekly ema(8, RSI(13))]
and [weekly RSI(13) < 40]

I'm guessing you got an error message on your first version for writing "weekly ema(8, RSI(13)]". The error message probably said something about missing parens, so you added a PAIR (one before the first RSI on the left, and one after the second RSI on the right). But, you only needed ONE, the second one after the second RSI - the one on the right. You needed the one parens on the right because you nested two functions - RSI inside EMA. Each function requires two parens, but your first version (that triggered the error) had only three parens.

was: [... weekly ema(8, RSI(13)]

should be: [... weekly ema(8, RSI(13) ) ]

You can guess how I know this... I've done it, too.

P.S. the posts have not been edited or deleted. The discussion now goes to two pages - below, see the right hand side above the "Leave a Comment" box. You should see a "<< 1 2 >>" legend. That's a navigation icon to go back and forth between the two pages. The discussion topic automatically opens to page 2 (or the latest page).

candidcactus

Thanks. As I get older I sometimes (often?) think I am becoming senile.

markd

just an illusion.... I think.